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The mean-field approximation model of company's income growth

Author

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  • Mizuno, Takayuki
  • Takayasu, Misako
  • Takayasu, Hideki

Abstract

We introduce a mean-field-type approximation for description of company's income statistics. Utilizing huge company data we show that a discrete version of Langevin equation with additive and multiplicative noises can appropriately describe the time evolution of a company's income fluctuation in statistical sense. The Zipf's law of income distribution is shown to be held in a steady-sate widely, and country dependence of income distribution can also be nicely implemented in our numerical simulation.

Suggested Citation

  • Mizuno, Takayuki & Takayasu, Misako & Takayasu, Hideki, 2004. "The mean-field approximation model of company's income growth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 332(C), pages 403-411.
    • Handle: RePEc:eee:phsmap:v:332:y:2004:i:c:p:403-411
    DOI: 10.1016/j.physa.2003.10.006
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    References listed on IDEAS

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    1. Sornette, Didier, 1998. "Linear stochastic dynamics with nonlinear fractal properties," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 250(1), pages 295-314.
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    Cited by:

    1. Hisano, Ryohei & Mizuno, Takayuki, 2011. "Sales distribution of consumer electronics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(2), pages 309-318.
    2. Chakrabarti, Anindya S., 2012. "Effects of the turnover rate on the size distribution of firms: An application of the kinetic exchange models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(23), pages 6039-6050.
    3. Xie, Wen-Jie & Gu, Gao-Feng & Zhou, Wei-Xing, 2010. "On the growth of primary industry and population of China’s counties," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(18), pages 3876-3882.

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