%0 Report
        %A Guerzoni, Marco
%A Riso, Luigi
%A Vivarelli, Marco
        %T Was Robert Gibrat Right? A Test Based on the Graphical Model Methodology
        %D 2023
        %8 2023 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 15995
        %U https://www.iza.org/publications/dp15995
        %X Using both regression analysis and an unsupervised graphical model approach (never applied before to this issue), we confirm the rejection of the Gibrat's law when our firm-level data are considered over the entire investigated period, while the opposite is true when we allow for market selection. 
Indeed, the growth behavior of the re-shaped (smaller) population of the survived most efficient firms is in line with the Law of Proportionate Effect; this evidence reconciles early and current literature testing Gibrat's law and may have interesting implications in terms of both applied and theoretical research.

        %K Gibrat's Law
%K firm survival
%K market selection
%K firm growth