|
| |
| Antonio Palestrini |
| |
| ''Firm Size Distribution and the Survival Bias'' |
| ( 2015, Vol. 35 No.3 ) |
| |
| |
| In this work, using the simple Kesten's process, I investigate the survival bias of the firm size distribution selecting a cohort of surviving firms. This work shows that the modified Kesten's process - in which firms exit when their size (measured as equity) cross the barrier (go bankrupt) - produces a limit distribution of the cohort more symmetric. This result provides a benchmark at comparing the distribution produced by economic models studying surviving firms. |
| |
| |
| Keywords: Firms' size distribution, multiplicative processes, survival bias. |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D3 - Distribution: General |
| |
| Manuscript Received : Jun 30 2014 | | Manuscript Accepted : Jul 24 2015 |
|
