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Original Articles

Zipf and the size distribution of firms

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Pages 205-206 | Received 30 Aug 1996, Published online: 02 Nov 2006
 

Abstract

Based on a sample of 50441 independent UK companies of all sizes covering all sectors of the UK economy, the size distribution of companies is close to lognormal, even though the hypothesis of lognormality can be rejected statistically. A Zipf plot shows that the Pareto distribution is a poor fit to the upper 5% tail.

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