dorsal/arxiv
View SchemaA Generalized Preferential Attachment Model for Business Firms Growth Rates: I. Empirical Evidence
| Authors | Fabio Pammolli, Dongfeng Fu, S. V. Buldyrev, Massimo Riccaboni, Kaushik Matia, Kazuko Yamasaki, H. E. Stanley |
|---|---|
| Categories | |
| ArXiv ID | physics/0609011 |
| URL | https://arxiv.org/abs/physics/0609011 |
| DOI | 10.1140/epjb/e2007-00133-4 |
Abstract
We introduce a model of proportional growth to explain the distribution $P(g)$ of business firm growth rates. The model predicts that $P(g)$ is Laplace in the central part and depicts an asymptotic power-law behavior in the tails with an exponent $\zeta=3$. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. We test the model at different levels of aggregation in the economy, from products, to firms, to countries, and we find that the its predictions are in good agreement with empirical evidence on both growth distributions and size-variance relationships.
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"abstract": "We introduce a model of proportional growth to explain the distribution\n$P(g)$ of business firm growth rates. The model predicts that $P(g)$ is Laplace\nin the central part and depicts an asymptotic power-law behavior in the tails\nwith an exponent $\\zeta=3$. Because of data limitations, previous studies in\nthis field have been focusing exclusively on the Laplace shape of the body of\nthe distribution. We test the model at different levels of aggregation in the\neconomy, from products, to firms, to countries, and we find that the its\npredictions are in good agreement with empirical evidence on both growth\ndistributions and size-variance relationships.",
"arxiv_id": "physics/0609011",
"authors": [
"Fabio Pammolli",
"Dongfeng Fu",
"S. V. Buldyrev",
"Massimo Riccaboni",
"Kaushik Matia",
"Kazuko Yamasaki",
"H. E. Stanley"
],
"categories": [
"physics.data-an",
"q-fin.GN"
],
"doi": "10.1140/epjb/e2007-00133-4",
"title": "A Generalized Preferential Attachment Model for Business Firms Growth Rates: I. Empirical Evidence",
"url": "https://arxiv.org/abs/physics/0609011"
},
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