A generalized preferential attachment model for business firms growth rates
AbstractWe 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 ζ=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 predictions are in good agreement with empirical evidence on both growth distributions and size-variance relationships. Copyright EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2007
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Bibliographic InfoArticle provided by Springer in its journal The European Physical Journal B.
Volume (Year): 57 (2007)
Issue (Month): 2 (05)
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Web page: http://www.springer.com/economics/journal/10051
Other versions of this item:
- S. V. Buldyrev & F. Pammolli & M. Riccaboni & K. Yamasaki & D.-F. Fu & K. Matia & H. E. Stanley, 2007. "A generalized preferential attachment model for business firms growth rates," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 57(2), pages 131-138, 05.
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