This paper presents a model of firm and market dynamics that is able to
reproduce the empirically observed patterns on firm growth and its statistical characteristics.
It goes beyond the existing firm models by reproducing all stylized facts
established in the literature. Furthermore, the model is flexible in the sense that various
parameter settings are identified that reproduce the stylized facts. We identify and
discuss different ranges of the model’s parameters that allow for adapting the model
to certain industries and life-cycle stages.

• Modeling Firm and Market Dynamics: A Flexible Model Reproducing Existing Stylized Facts on Firm Growth