On the Evolution of Firm Size Distributions
Year: 2008
Type: article
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. (JEL L11, L25)
Source: American Economic Review
DOI: 10.1257/aer.98.1.426
Authors: Paolo Angelini, Andrea Generale
Institution: Bank of Italy
Language: English
Topic: Firm Innovation and Growth
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1999067955