• Media type: E-Book
  • Title: The Law of Proportionate Effect : A test based on the graphical model methodology
  • Contributor: Guerzoni, Marco [Author]; Riso, Luigi [Author]; Vivarelli, Marco [Author]
  • Published: [S.l.]: SSRN, 2023
  • Extent: 1 Online-Ressource (20 p)
  • Language: English
  • Keywords: Gibrat’s Law ; firm survival ; market selection ; firm growth
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 3, 2023 erstellt
  • Description: Using both regression analysis and an unsupervised graphical model approach (never applied before to this issue), we confirm the rejection of Gibrat’s law when our firm-level data are considered over the entire investigated period, while the opposite is true when we allow for market selection. Indeed, the growth behavior of the re-shaped (smaller) population of the survived most efficient firms is in line with the Law of Proportionate Effect; this evidence reconciles early and current literature testing Gibrat’s law and may have interesting implications in terms of both applied and theoretical research
  • Access State: Open Access