Department of Management

The devil dwells in the tails: A quantile regression approach to firm growth

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  • Toke Reichstein, Denmark
  • Michael Slavensky Dahl, Denmark
  • Bernd Ebersberger, Management Center Innsbruck (MCI), Austria
  • Morten Berg Jensen
  • Department of Marketing and Statistics
This paper explores firm growth rate distribution in a Gibrat's Law context. It is novel in two respects. First, rather than limiting the analysis to a focus on the conditional mean, we investigate the entire shape of the distribution. Second, we show that differences in the firm growth rate process between large and small firms are highly circumstantial and depend on the industry dynamics. The data used include more than 9,000 Danish manufacturing, services and construction firms. We provide robust evidence indicating that firm growth studies should concentrate less on explaining means and instead focus on other parts of the firm growth rate distribution.
Original languageEnglish
JournalJournal of Evolutionary Economics
Volume20
Issue2
Pages (from-to)219-231
Number of pages13
ISSN0936-9937
DOIs
Publication statusPublished - 2010

    Research areas

  • Firm growth, Quantile regression, Distribution shape

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