Do Firms Share The Same Functional Form Of Their Growth Rate Distribution? A New Statistical Test
The authors introduce a new statistical test of the hypothesis that a balanced panel of firms have the same growth rate distribution or, more generally, that they share the same functional form of growth rate distribution. They applied the test to European Union and US publicly quoted manufacturing firms data, considering functional forms belonging to the Subbotin family of distributions. While the hypotheses are rejected for the vast majority of sets at the sector level, They cannot rejected them at the subsector level, indicating that homogenous panels of firms could be described by a common functional form of growth rate distribution.