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We introduce a model of proportional growth to explain the distribution Pg(g) of business-firm growth rates. The model predicts that Pg(g) is exponential in the central part and depicts an asymptotic power-law behavior in the tails with an exponent z=3. Because of data limitations, previous...
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ability to generate new growth options. This simple theory predicts that Tobin's q falls with age. Further, competition in the …
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ability to generate new growth options. This simple theory predicts that Tobin's q falls with age. Further, competition in the …
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