The Devil Dwells in the Tails: A Quantile Regression Approach to Firm Growth

Journal of Evolutionary Economics, Vol. 20, No. 2, 2010, pp. 219-231

Posted: 21 Mar 2010 Last revised: 14 Apr 2010

See all articles by Toke Reichstein

Toke Reichstein

affiliation not provided to SSRN

Michael S. Dahl

Aalborg University Business School

Bernd Ebersberger

Management Center Innsbruck (MCI)

Morten Berg Jensen

Aarhus University - School of Business and Social Sciences

Date Written: March 15, 2010

Abstract

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.

Keywords: Firm growth, Quantile regression, Distribution shape

Suggested Citation

Reichstein, Toke and Dahl, Michael Slavensky and Ebersberger, Bernd and Jensen, Morten Berg, The Devil Dwells in the Tails: A Quantile Regression Approach to Firm Growth (March 15, 2010). Journal of Evolutionary Economics, Vol. 20, No. 2, 2010, pp. 219-231, Available at SSRN: https://ssrn.com/abstract=1571233

Toke Reichstein

affiliation not provided to SSRN

No Address Available

Michael Slavensky Dahl (Contact Author)

Aalborg University Business School ( email )

Fibigerstraede 11
Aalborg Ø, 9220
Denmark

HOME PAGE: http://msdahl.net

Bernd Ebersberger

Management Center Innsbruck (MCI) ( email )

Universitaetsstr. 15
Innsbruck, 6020
Austria

Morten Berg Jensen

Aarhus University - School of Business and Social Sciences ( email )

Fuglesangs Alle 4
DK-8210 Aarhus V, DK 8210
Denmark

Do you want regular updates from SSRN on Twitter?

Paper statistics

Abstract Views
385
PlumX Metrics