Ibragimov, Rustam - In: Journal of Econometrics 181 (2014) 1, pp. 25-33
’ growth patterns. We show that if consumers’ signals in the model are moderately heavy-tailed and the firms use the sample … mean of the signals to estimate the ideal product, then the firms’ output levels exhibit positive persistence. In such a … setting, large firms have an advantage over their smaller counterparts. These properties are reversed for signals with …
