On the Evolution of Firm Size Distributions

Authors: Angelini, Paolo; Generale, Andrea

Source: The American Economic Review, Volume 98, Number 1, March 2008 , pp. 426-438(13)

Publisher: American Economic Association

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Abstract:

We study the impact of financial constraints on firm size distribution (FSD). We find that financially constrained firms, identified using various proxies, are smaller than the others (their FSD is more skewed to the right). Among OECD countries, however, the FSD of nonconstrained firms virtually overlaps that of the entire sample, suggesting that the overall impact of financial constraints on the FSD is modest. The difference is more pronounced in our sample of firms from non-OECD countries. We conclude that financial constraints cannot be considered the main determinant of the FSD evolution in developed economies.

Document Type: Short communication

DOI: http://dx.doi.org/10.1257/aer.98.1.426

Publication date: 2008-03-01

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The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.
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