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Cluster Size Distributions of Heterogeneous Economic Agents: Are there non-self-averaging phenomena in economics?

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Masanao Aoki (Department of Economics, University of California)

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Abstract

This paper outlines the applications of one-and two-parameter Poisson-Dirichlet distributions to describe stationary statistical distributions of clus-ters of agents by types. We discuss how the notion of residudal allocation processes in statistics and population genetics literature also arises as stick-breaking processes in the physics literature. The phenomena of self-(non-) averaging in the physics literature are analogous to long-run non-vanishing of profits or variances of capital sizes in some disequilibrium economic dy-namics. We offer an economic interpretation of the physical notion of non-self-averaging as something that refers to the existence of long-run dise-quilibrium phenomena in economics, rather than thermodynamic limits in statistical physics, since both involve non-vanishing of variances as the size or the time goes to infinity.

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File URL: http://www.e.u-tokyo.ac.jp/cirje/research/dp/2005/2005cf388.pdf
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-388.

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Length: 14 pages
Date of creation: Nov 2005
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Handle: RePEc:tky:fseres:2005cf388

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  1. Canning, D. & Amaral, L. A. N. & Lee, Y. & Meyer, M. & Stanley, H. E., 1998. "Scaling the volatility of GDP growth rates," Economics Letters, Elsevier, vol. 60(3), pages 335-341, September. [Downloadable!] (restricted)
  2. Aoki, Masanao, 2002. "Open models of share markets with two dominant types of participants," Journal of Economic Behavior & Organization, Elsevier, vol. 49(2), pages 199-216, October. [Downloadable!] (restricted)
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