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Firm Size Distribution.pdf

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Preview of Firm Size Distribution
🔗 Source: rais.education
📊 Size: 3.8 MB
📄 Pages: 9 pages
⬇️ Downloads: 123

Summary

The U.S. firm size distribution can be constructed using individual income tax records from the Internal Revenue Service, and the resulting distribution is statistically identical to the one reported by the United States Census Bureau. The distribution follows a power law, which is a unique class of statistical distributions that signal the existence of an underlying process governing the system. A comparison of model fits between a log-normal and power law distribution for the year 1998 shows that while both models can fit the data, the power law model is more confident. The methodology uses 4.2 billion IRS records from 1998-2016, and the resulting firm size distribution is plotted on a log-log scale with exponential binning assignments, showing that the distribution follows a power law.

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Description

The U.S.

Technical Information

  • File Format: PDF
  • File Size: 3.8 MB
  • Pages: 9
  • Language: EN
  • Total Downloads: 123
  • Last Updated: 4 hours ago

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