Firm Heterogeneity and Production Flexibility: Evidence from Price-Cost Margins of Large and Small Firm
Document Type
Article
Journal/Book Title/Conference
Bulletin of Economic Research
Volume
45
Publication Date
1993
First Page
229
Last Page
244
Abstract
The distribution of firm sizes is widely recognized as an important aspect of firm heterogeneity. A vast literature has evolved from the early efforts of Modigliani (1958) and Sylos-Labini (1962) that is concerned with explaining why firm size varies across industries. The determinants of the inter-industry distribution of firm size include scale economies, capital requirements, and government policy. Industries with a large minimum efficient scale of output, for example, are less conducive to the entry and survival of small firms (Weiss (1976)).
Recommended Citation
Firm Heterogeneity and Production Flexibility: Evidence from Price-Cost Margins of Large and Small Firms” (with William F. Chappell and Walter J. Mayer), Bulletin of Economic Research 45 (July 1993), pp. 229–244.
