All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

 
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

  This abstract has been downloaded 1369 times                The Full PDF of this paper has been downloaded 163852 times