Box-cox quantile regression and the distribution of firm sizes

Details

Serval ID
serval:BIB_BAB0091771FC
Type
Article: article from journal or magazin.
Collection
Publications
Title
Box-cox quantile regression and the distribution of firm sizes
Journal
Journal of Applied Econometrics
Author(s)
Machado J.A.F., Mata J.
ISSN
0883-7252
Publication state
Published
Issued date
06/2000
Peer-reviewed
Oui
Volume
15
Number
3
Pages
253-274
Language
english
Abstract
Using the Box-Cox quantile regression model, we analyse the size distribution of firms in Portuguese manufacturing during the 1980s. Specifically, we estimate the effect of selected industry attributes on the location, scale, skewness and kurtosis of the conditional size distributions of firms. We find that industry attributes affect the size of firms in the same direction across the distribution, but the effects of these variables are typically much greater at the largest quantiles. Over time the distribution shifted towards smaller firms, due mainly to the way the economy responds to industry characteristics rather than to changes of the level of these characteristics. The prediction of lognormality, implied by Gibrat's Law, is soundly rejected by the observed distribution of firm sizes. However, we found that, at least in 1983, lognormality is a reasonable description of the conditional size distribution
Keywords
Manufacturing-Industries, Wage structure, Determinants, Kurtosis, Growth, Model
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Create date
19/02/2016 12:28
Last modification date
20/08/2019 15:28
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