Firm size and optimal growth rates

Uzi Segal*, Avia Spivak

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-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 languageEnglish
Pages (from-to)159-167
Number of pages9
JournalEuropean Economic Review
Volume33
Issue number1
DOIs
StatePublished - Jan 1989
Externally publishedYes

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