On the irreconcilability of Pareto and Gibrat laws
If business firms face a multiplicative growth process in which their growth rates are Laplace distributed and independent from their sizes, the size cannot be distributed according to a stationary Pareto distribution. Recent contributions, using formal arguments, seem to contrast with these statements. We prove that the proposed formal results are wrong.
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Volume (Year): 388 (2009)
Issue (Month): 7 ()
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