Power Laws in Firm Size and Openness to Trade: Measurement and Implications
Existing estimates of power laws in firm size typically ignore the impact of international trade. Using a simple theoretical framework, we show that international trade systematically affects the distribution of firm size: the power law exponent among exporting firms should be strictly lower in abso...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2010
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Schriftenreihe: | IMF Working Papers
Working Paper No. 10/109 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | Existing estimates of power laws in firm size typically ignore the impact of international trade. Using a simple theoretical framework, we show that international trade systematically affects the distribution of firm size: the power law exponent among exporting firms should be strictly lower in absolute value than the power law exponent among non-exporting rms. We use a dataset of French firms to demonstrate that this prediction is strongly supported by the data. While estimates of power law exponents have been used to pin down parameters in theoretical and quantitative models, our analysis implies that the existing estimates are systematically lower than the true values. We propose two simple ways of estimating power law parameters that take explicit account of exporting behavior |
Beschreibung: | 1 Online-Ressource (31 p) |
ISBN: | 1455200689 9781455200689 |
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spelling | Levchenko, Andrei A. Verfasser aut Power Laws in Firm Size and Openness to Trade Measurement and Implications Levchenko, Andrei A Washington, D.C International Monetary Fund 2010 1 Online-Ressource (31 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 10/109 Existing estimates of power laws in firm size typically ignore the impact of international trade. Using a simple theoretical framework, we show that international trade systematically affects the distribution of firm size: the power law exponent among exporting firms should be strictly lower in absolute value than the power law exponent among non-exporting rms. We use a dataset of French firms to demonstrate that this prediction is strongly supported by the data. While estimates of power law exponents have been used to pin down parameters in theoretical and quantitative models, our analysis implies that the existing estimates are systematically lower than the true values. We propose two simple ways of estimating power law parameters that take explicit account of exporting behavior Online-Ausg Ranciere, Romain Sonstige oth di Giovanni, Julian Sonstige oth http://elibrary.imf.org/view/IMF001/10873-9781455200689/10873-9781455200689/10873-9781455200689.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Levchenko, Andrei A. Power Laws in Firm Size and Openness to Trade Measurement and Implications |
title | Power Laws in Firm Size and Openness to Trade Measurement and Implications |
title_auth | Power Laws in Firm Size and Openness to Trade Measurement and Implications |
title_exact_search | Power Laws in Firm Size and Openness to Trade Measurement and Implications |
title_exact_search_txtP | Power Laws in Firm Size and Openness to Trade Measurement and Implications |
title_full | Power Laws in Firm Size and Openness to Trade Measurement and Implications Levchenko, Andrei A |
title_fullStr | Power Laws in Firm Size and Openness to Trade Measurement and Implications Levchenko, Andrei A |
title_full_unstemmed | Power Laws in Firm Size and Openness to Trade Measurement and Implications Levchenko, Andrei A |
title_short | Power Laws in Firm Size and Openness to Trade |
title_sort | power laws in firm size and openness to trade measurement and implications |
title_sub | Measurement and Implications |
url | http://elibrary.imf.org/view/IMF001/10873-9781455200689/10873-9781455200689/10873-9781455200689.xml |
work_keys_str_mv | AT levchenkoandreia powerlawsinfirmsizeandopennesstotrademeasurementandimplications AT ranciereromain powerlawsinfirmsizeandopennesstotrademeasurementandimplications AT digiovannijulian powerlawsinfirmsizeandopennesstotrademeasurementandimplications |