کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
974352 | 1480115 | 2016 | 8 صفحه PDF | دانلود رایگان |
• We use global data to examine empirically the distribution of economic profit rates.
• We use the data to test eight theoretical distributions with EDF statistics.
• The consensus finding in the literature supports the Laplace distribution.
• We find economic profit rates are best fit by the heavier-tailed Cauchy distribution.
Gibrat (1931) initiated the study of the distribution of firms’ profit rates, suggesting the distribution was log-normal. Although initial empirical work supported that finding, a consensus has developed in the literature that the distribution of firm profit rates is best approximated by the Laplace distribution. Using a richer database than prior studies and testing for more theoretical distributions, we find that the distribution of firm profit rates is best approximated by the heavier-tailed Cauchy distribution.
Journal: Physica A: Statistical Mechanics and its Applications - Volume 458, 15 September 2016, Pages 356–363