This paper reports on simulation results for the Wald test for ∝1=∝2=0 in the regression model [Please open the additional file (8526_math.png) to see the regression model] for the case ĸ is known and for the case where ĸ has to be estimated using nonlinear least squares (NLS). This last...

The proposition that firm growth rates are distributed independently of firm size, generally referred to as Gibrat's Law, is tested in virtually every empirical study on firm growth rates. We conclude from our review of these studies that the validity of Gibrat's Law depends on what version is...