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Key Empirical Features: Distribution of Firm Sizes and Fluctuations

Key Empirical Features: Distribution of Firm Sizes and Fluctuations​

Understanding the distribution of firm sizes and their fluctuations is crucial for determining the nature of the problem at hand and the path to follow for a deeper understanding. This section reviews these fundamental characteristics within the population of fluctuating French traders.

Distribution Characteristics​

  • Firm Size Distribution: Observed through metrics such as employment levels or total sales, including domestic sales, across various regions and time periods.
  • Logarithmic Growth Rates: Both firm sizes and their multiplicative growth rates are distributed effectively on a logarithmic scale.

This universal and robust property significantly influences the analytical steps we will undertake in this paper. The logarithmic scale distribution is a key feature observed across multiple populations of economic agents, guiding our understanding and approach to the problem.