search query: @author Goddard, J. / total: 14
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| Author: | Goddard, J. Wilson, J. Blandon, P. |
| Title: | Panel tests of Gibrat's law for Japanese manufacturing |
| Journal: | International Journal of Industrial Organization
2002 : MAR, VOL. 20:3, p. 415-433 |
| Index terms: | Unit roots Manufacturing Monte Carlo technique Japan |
| Language: | eng |
| Abstract: | The properties of the standard cross sectional test of the Law of proportionate effect are compared with those of three alternative panel unit root tests, using Monte Carlo methods. The cross sectional procedure produces biased parameter estimates and the test suffers from a loss of power if there are heterogenous individual firm effects. Suitable designed panel tests avoid these difficulties. Empirical results for a panel of Japanese manufacturing firms provides some support for the notion that log firm sizes are meanreverting towards heterogeneous equilibrium values, and that the LPE should be rejected. |
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