Template-Type: ReDIF-Paper 1.0
Author-Name: Marco Guerzoni
Author-X-Name-First: Marco
Author-X-Name-Last: Guerzoni
Author-Email: marco.guerzoni@unimib.it
Author-Workplace-Name: DEMS, Università di Milano-Bicocca, Milano, Italy - BETA, University of Strasbourg, France
Author-Name: Luigi Riso
Author-X-Name-First: Luigi
Author-X-Name-Last: Riso
Author-Email: luigi.riso@unicatt.it
Author-Workplace-Name: Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy
Author-Name: Marco Vivarelli
Author-X-Name-First: Marco
Author-X-Name-Last: Vivarelli
Author-Email: marco.vivarelli@unicatt.it
Author-Workplace-Name: Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany
Title: Was Robert Gibrat right? A test based on the graphical model methodology
Abstract: Using both regression analysis and an unsupervised graphical model approach (never applied before to this issue), we confirm the rejection of the 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.
Length: 22
Creation-Date: 2023-03
File-URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0031.pdf
File-Format: Application/pdf
File-Function: First version, 2023
Number: dipe0031
Classification-JEL: L11
Keywords: Gibrat’s Law, firm survival, market selection, firm growth
Handle: RePEc:ctc:serie5:dipe0031