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Firm-size distribution in Poland – is power law applicable?

Author

Listed:
  • Piotr Gabrielczak

    (University of Lodz)

  • Tomasz Serwach

    (University of Lodz)

Abstract

The article focuses on power laws and their growing popularity in science in general and in economics specifically. The theoretical mechanisms responsible for their generating are reviewed. We also empirically test whether firm-size distribution of companies in Poland has the characteristics of the Zipf’s law – a special case of a power law. This is confirmed based on an investigation within the sample of 2000 largest companies and a set of alternative estimators of the power law exponent.

Suggested Citation

  • Piotr Gabrielczak & Tomasz Serwach, 2019. "Firm-size distribution in Poland – is power law applicable?," Lodz Economics Working Papers 3/2019, University of Lodz, Faculty of Economics and Sociology.
    • Handle: RePEc:ann:wpaper:3/2019
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    File URL: http://hdl.handle.net/11089/30229
    File Function: First version, 2019
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    power law; Zipf’s law; firm-size distribution; scaling;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D39 - Microeconomics - - Distribution - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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