Firm Growth Function and Extended-Gibrat’s Property

Figure 4

(a) By classifying sales of firms in 2007 in Japan included in ORBIS database into age-rank bins with 1-year width, logarithmic average of sales in each bin is depicted by circles in single logarithmic plots. Similarly, logarithmic average of sales in 2008 in Japan is also depicted by crosses. (b) Logarithmic average of sales classified into age-rank bins with a 1-year width is plotted in double logarithmic plots. In both figures, dashed and dotted lines represent optimal power-law and optimal exponential functions, respectively.

(a)

(b)