Relative size distribution of business firms - A QRSE approach

Published: 8 August 2024| Version 1 | DOI: 10.17632/xj6xv65v6y.1
Contributor:
Doguhan Sundal

Description

Using various firm size measures for publicly traded business firms in the USA, this paper employs a quantal response statistical equilibrium model to study empirical regularities in size distributions. The study found an increase in randomness regarding firm responsiveness, a stronger dependency of the equilibrium distribution on changes in firm decisions, and lower levels of aspiration. The model also indicates a persistently negative gap between the aspired relative size and the center of mass of the distribution.

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Categories

Economics, Industrial Organization, Econophysics, Maximum Entropy

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