This study examines the firm size distribution of US banks and credit unions. A truncated lognormal distribution describes the size distribution, measured using assets data, of a large population of small, community-based commercial banks. The size distribution of a smaller but increasingly dominant cohort of large banks, which operate a high-volume low-cost retail banking model, exhibits power-law behaviour. There is a progressive increase in skewness over time, and Zipf’s Law is rejected as a descriptor of the size distribution in the upper tail. By contrast, the asset size distribution of the population of credit unions conforms closely to the lognormal distribution.
|Number of pages||18|
|Journal||International Journal of the Economics of Business|
|Early online date||6 Feb 2014|
|Publication status||Published - 2014|
Bibliographical noteThe authors gratefully acknowledge the helpful comments of two anonymous referees on an earlier draft of this paper. The usual disclaimer applies.
- Firm Size distribution
- Zipf's Law
- Gibrat's Law
- Credit Unions