TY  - RPRT
        AU  - Guerzoni, Marco
AU  - Riso, Luigi
AU  - Vivarelli, Marco
        TI  - Was Robert Gibrat Right? A Test Based on the Graphical Model Methodology
        PY  - 2023/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15995
        UR  - https://www.iza.org/publications/dp15995
        AB  - 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.

        KW  - Gibrat's Law
KW  - firm survival
KW  - market selection
KW  - firm growth
        ER  -