Table 1 Parameters that are either used directly as inputs in our model, Eqs. (5) and (6), or used to determine or postulate those input parameters. The firm-size distribution (FSD) emerges for the conditions stated in the table, particularly that there are no interdependencies among the parameters for a node (one particularly problematic one would be that \(h_{i}\) and/or \(k_{i}\) were correlated, but our results do not support this)
Parameter | Empirical | Model | Model conditions for FSD |
|---|---|---|---|
\(\lambda _{i}\) | ✓ | ✓ | – |
\(\xi _{i}\) | ✓ | ✓(function of \(h_{i},v_{i}\)) | – |
\(h_{i}\) | – | ✓ | \(0< h_{i}\leq 1\), no parameter interdependencies |
\(v_{i}\) | – | ✓ | \(0< v_{i}\leq 1\), no parameter interdependencies |
\(f_{ij}\) | ✓ | – | – |
\(a_{ij}\) | – | ✓(determined from \(f_{ij}\)) | – |