Firm size and optimal growth rates

Uzi Segal; Avia Spivak

doi:10.1016/0014-2921(89)90043-3

Firm size and optimal growth rates

Uzi Segal, Avia Spivak

Department of Economics

Research output: Contribution to journal › Article › peer-review

12 Scopus citations

Abstract

This paper presents a theoretical model in which, due to dissolution costs, the rate of growth of small Firms tends to be higher and more variable than that of larger firms. This model also predicts that for large firms the rate of growth is fixed, as claimed by Gibrat's Law.

Original language	English
Pages (from-to)	159-167
Number of pages	9
Journal	European Economic Review
Volume	33
Issue number	1
DOIs	https://doi.org/10.1016/0014-2921(89)90043-3
State	Published - 1 Jan 1989

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/0014-2921(89)90043-3

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Firm size and optimal growth rates

Abstract

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