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Company Size Distributions as Economy Aggregated Indicators

Author(s): Juan Carlos Pérez Mesa | Emilio Galdeano-Gómez

Journal: Research in Applied Economics
ISSN 1948-5433

Volume: 1;
Issue: 1;
Date: 2009;
Original page

This paper studies the distribution of company income and provides evidence that income statistics follow a universal law (Zipf-Mandelbrot) and the parameters of this distribution gather relevant information as a proxy of the state's economy. This article contributes to the economic interpretation of these parameters. We find that they are robust indicators of the structure of an economy and should be taken into account when designing policies to promote competition.
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