Does Gibrat's Law hold among young, small firms?

By F. Lotti, Enrico Santarelli, M. Vivarelli. 2003

352 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/f809650d988428b6958b82c1ced634e9baa21466

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Citations in the corpus

Invariances and Diversities in the Patterns of Industrial Evolution: Some Evidence from Italian Manufacturing Industries (2007, background): “Note, however, that our analyses only consider relatively large firms (with more than 20 employees): hence our evidence, as such, can easily come together with violations of Gibrat-type processes characterizing the growth patterns of younger, and typically smaller, business firms (cfr. Audretsch et ”
The Dynamics of Employment Growth: New Evidence from 18 Countries (2014, background): “Lotti et al (2003) and Neumark et al. (2008) find that there is a negative relationship between firm size and growth, violating the “Gibrat’s Law” which states that firm size and growth should be independent.”
Establishment exits in Germany: the role of size and age (2012, methodology): “Empirical evidence for this is provided by Lotti et al. (2003, 2009) and Calvo (2006), among others.”
Are high-growth firms one-hit wonders? Evidence from Sweden (2015, background): “Madsen (2010) even argues that OLS can yield superior estimates even when β < 1, provided that the variation in αi is relatively low and that σ(αi)<σ(εi,t), which Hall and Mairesse (2005) argue are likely for short panels of firm data.”
Firm Growth : a Survey (2007, neutral): “(For other reviews of empirical tests of Gibrat’s Law, the reader is referred to the survey by Lotti et al (2003); for a survey of how Gibrat’s law holds for the services sector see Audretsch et al. (2004).)”
Entrepreneurship and SME growth: evidence from advanced and laggard transition economies (2011, result): “A number of other studies have found evidence which fully or partially support the Law of Proportionate Effect (Das, 1995; Lotti et al., 2003; Johnson et al. 1999; Piergiovanni et al. 2002; Diaz-Hermelo and Vassolo, 2007).”
Firm Growth: Empirical Analysis (2010, neutral): “…smaller and younger ﬁrms have higher expected growth rates than older and larger ﬁrms (some classic references include Mansﬁeld 1962, Singh and Whittington 1975, Hall 1987, Evans 1987a,b, Hart and Oulton 1996, see also Lotti, Santarelli, and Vivarelli 2003 and Coad 2009, Chapter 4 for surveys).”
To be born is not enough: the key role of innovative start-ups (2016, neutral): “New firms entering the market are more likely to survive if they are set up on a large scale of production (Sutton 1997; Mata and Portugal 1994; Geroski 1995; Lotti et al. 2003, 2009).”
The role of clustering in the growth of new technology-based firms (2010, background): “…countries, and regions (e.g., Hamilton et al. 2002).3 However, the Law still forms a useful null hypothesis because a few empirical studies do find random growth rates for small firms in some circumstances, although not in high-tech sectors (e.g., Lotti et al. 2003; Audretsch et al. 2004).”
The Relationship between Entrepreneurship and Unemployment: is Portugal an Outlier? (2004, background): “Lotti, Santarelli and Vivarelli [14,15] find that, even if in the years following start-up Gibrat’s Law could be rejected, in subsequent years growth rates seem to converge towards a Gibrat-like pattern.”
Age and firm growth. Evidence from three European countries (2013, background): “…the nature of the data does not allow us to control for sample selection, given that we neither observe the youngest/smallest firms nor firms’ exit, thus we are forced to conduct an analysis of the relationship between age and growth, conditional on survival (see Lotti et al., 2003, p. 221).”
Entrepreneurship and the Process of Firms' Entry, Survival and Growth (2007, neutral): “Indeed, in a recent paper, Michelacci and Silva (2005) found that the fraction of entrepreneurs who set up their businesses in the location where they were born was significantly higher than the corresponding share for dependent workers and – more importantly – that firms created by locals were bigg”
Young Innovative Companies: The New High-Growth Firms? (2013, background): “Some of these studies found, although often only weakly, an inverse relationship between firm size and firm growth, which was often also weakly confirmed for the larger firms (Mansfield, 1962; Hall, 1987b; Evans, 1987b; Lotti et al., 2003).”