Friday 5 May 2017 – Stylized facts and evidence on representative firm approach
Stylized facts that are not facts and facts that should be stylized
by Prof. Bottazzi, SSSUP
Stylized facts are the most elusive of concepts. Nonetheless, they can be a powerful tool to understand how economies work and, despite their scarcity, they deserve the highest consideration. At the same time, they also require a particularly cautious attitude in the discussion about their nature and implications.
Firm heterogeneity and the empirical relevance of theories of competitive market selection
by Prof. Tamagni, SSSUP
Wide and persistent heterogeneities in productivity, profit margins, size and growth, even within narrowly defined industries, cast serious doubts on the empirical relevance of any model based on the notion of an average, representative firm. Modern theories of firm-industry dynamics allowing for firm-heterogeneity provide a more promising alternative, but their implications poorly match with the empirical evidence on market selection dynamics