ENTRY, GIBRAT'S LAW, INNOVATION, AND THE GROWTH OF FIRMS

摘要: and death of firms, we lack even crude answers to the following basic questions regarding dynamic processes governing an industry's structure. What are quantitative effects various factors on rates entry exit? How well can growth firms be represented by Gibrat's law proportionate effect? have been successful innovations a firm's rate? determines amount mobility within size structure?' This paper provides some tentative these questions. First, it constructs simple models estimate capital requirements, profitability, other such its exit rates. Second, investigates how effect represent in each industries for which appropriate data. Although this has played prominent role designed explain distribution tested only few times against data very large firms. Third, difference rate between that carried out significant comparable initial size. The results help measure importance innovation as cause interfirm differences rates, they shed new light rewards innovations. Fourth, presents tests model interindustry * author is associate professor economics at Carnegie Institute Technology. paper, preliminary version was read August 1961 meetings Econometric Society, will reprinted Cowles Foundation Paper. work based part