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Productivity Dispersion: Facts, Theory, and Implications

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  • Hideaki Aoyama
  • Hiroshi Yoshikawa
  • Hiroshi Iyetomi
  • Yoshi Fujiwara

Abstract

We study productivity dispersions across workers, firms and industrial sectors. Empirical study of the Japanese data shows that they all obey the Pareto law, and also that the Pareto index decreases with the level of aggregation. In order to explain these two stylized facts, we propose a theoretical framework built upon the basic principle of statistical physics. In this framework, we employ the concept of superstatistics which accommodates fluctuations of aggregate demand.

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  • Hideaki Aoyama & Hiroshi Yoshikawa & Hiroshi Iyetomi & Yoshi Fujiwara, 2008. "Productivity Dispersion: Facts, Theory, and Implications," Papers 0805.2792, arXiv.org.
    • Handle: RePEc:arx:papers:0805.2792
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    Cited by:

    1. Aoki, Masanao & Yoshikawa, Hiroshi, 2009. "The nature of equilibrium in macroeconomics: A critique of equilibrium search theory," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-9.

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