The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Gibrat’s Law

  • José Mata
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1239

Abstract

Gibrat’s law states that a great deal of the evolution of firm size distribution over time is due to the action of chance. While chance is still seen as an important driver of the size of firms, recent studies call for chance to be supplemented by some more structured models in order to explain the observed patterns of firm size evolution.

Keywords

Concentration Firm growth Firm size Firm size distribution Gibrat’s law Heteroskedasticity 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • José Mata
    • 1
  1. 1.