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We introduce a new statistical test of the hypothesis that a balanced panelof firms have the same growth rate distribution or, more generally, that theyshare the same functional form of growth rate distribution. We applied the testto European Union and US publicly quoted manufacturing firms data, consideringfunctional forms belonging to the Subbotin family of distributions. While ourhypotheses are rejected for the vast majority of sets at the sector level, wecannot rejected them at the subsector level, indicating that homogenous panelsof firms could be described by a common functional form of growth ratedistribution.

Do firms share the same functional form of their growth rate distribution? A new statistical test