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- W3185970707 abstract "Heavy tails play an important role in modern macroeconomics and international economics. Previous work often assumes a Pareto distribution for firm size, typically with a shape parameter approaching Zipf’s law. This convenient approximation has dramatic consequences for the importance of large firms in the economy. But we show that a lognormal distribution, or better yet, a convolution of a lognormal and a non-Zipf Pareto distribution, provides a better description of the U.S. economy, using confidential Census Bureau data. These findings hold even far in the upper tail and suggest heterogeneous firm models should more systematically explore deviations from Zipf’s law." @default.
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- W3185970707 date "2021-01-01" @default.
- W3185970707 modified "2023-09-27" @default.
- W3185970707 title "Heavy Tailed, but not Zipf: Firm and Establishment Size in the U.S" @default.
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