dorsal/arxiv
View SchemaThe Growth of Business Firms: Theoretical Framework and Empirical Evidence
| Authors | Dongfeng Fu, Fabio Pammolli, S. V. Buldyrev, Massimo Riccaboni, Kaushik Matia, Kazuko Yamasaki, H. E. Stanley |
|---|---|
| Categories | |
| ArXiv ID | physics/0512005 |
| URL | https://arxiv.org/abs/physics/0512005 |
| DOI | 10.1073/pnas.0509543102 |
Abstract
We introduce a model of proportional growth to explain the distribution of business firm growth rates. The model predicts that the distribution is exponential in the central part and depicts an asymptotic power-law behavior in the tails with an exponent 3. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. In this article, we test the model at different levels of aggregation in the economy, from products to firms to countries, and we find that the model's predictions agree with empirical growth distributions and size-variance relationships.
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"abstract": "We introduce a model of proportional growth to explain the distribution of\nbusiness firm growth rates. The model predicts that the distribution is\nexponential in the central part and depicts an asymptotic power-law behavior in\nthe tails with an exponent 3. Because of data limitations, previous studies in\nthis field have been focusing exclusively on the Laplace shape of the body of\nthe distribution. In this article, we test the model at different levels of\naggregation in the economy, from products to firms to countries, and we find\nthat the model\u0027s predictions agree with empirical growth distributions and\nsize-variance relationships.",
"arxiv_id": "physics/0512005",
"authors": [
"Dongfeng Fu",
"Fabio Pammolli",
"S. V. Buldyrev",
"Massimo Riccaboni",
"Kaushik Matia",
"Kazuko Yamasaki",
"H. E. Stanley"
],
"categories": [
"physics.data-an",
"q-fin.GN"
],
"doi": "10.1073/pnas.0509543102",
"title": "The Growth of Business Firms: Theoretical Framework and Empirical Evidence",
"url": "https://arxiv.org/abs/physics/0512005"
},
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