Policy efforts to revitalise entrepreneurship and investment in Spain are key to generating growth and new jobs. The government has a substantial reform program to make it easier to do business in Spain, which should in some cases be deepened. Boosting economic growth requires a new generation...

In this article we extend the agent-based model of firms' formation and growth proposed in [4]. In [4] the firms creation, expansion or contraction results from the interaction of heterogeneous utility maximizers. While the original model was able to replicate the power law distribution in the...

This paper investigates the role(s) of high-growth firms (HGFs) in the robust growth-rate distribution. HGFs are identified as firms for which the growth-rate distribution exhibits power-law decay. In contrast to the traditional means of identifying HGFs, a distributional approach eliminates the...

Gibrat’s Law predicts that firm growth is a purely random effect and therefore should be independent of firm size. The purpose of this paper is to test Gibrat’s law within the retail industry, using a novel data-set comprising all Swedish limited liability companies active at some point...

Empirical applications of the translog cost function often conclude that firms operate at increasing returns to scale. From the viewpoint of economic theory, this does not make sense. We demonstrate that empirical cost functions ignore the fact that differences in firm output depends on cost...

The purpose of this paper is to investigate if the industry context matters for whether Gibrat's law is rejected or not using a dataset that consists of all limited firms in 5-digit NACE-industries in Sweden during 1998-2004. The results reject Gibrat's law on an aggregate level, since small...

The purpose of this paper is to distinguish between the determinants of new start-ups and in-migration of firms using a data-set that covers 13,471 limited liability firms in the Swedish wholesale trade industries during the period 2000-2004. Our results indicate that the presence of a...

The purpose of this paper is to investigate if the industry context matters for whether Gibrat's law is rejected or not using a dataset that consists of all limited firms in 5-digit NACE-industries in Sweden during 1998-2004. The results reject Gibrat's law on an aggregate level, since small...