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Compositional Growth Models

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  • Jos'e Moran
  • Massimo Riccaboni

Abstract

We review models of compositional growth, which were introduced to explain the growth statistics of various quantities ranging from firm sizes to GDP. In these models, entities are decomposed into units that grow independently. Thus, the growth rate of the entity is the addition of the growth rates of the composing units, with possibly heterogeneous weights. We review such models and show that they can be understood through a unifying theoretical framework, explaining the resulting growth rate distributions using mixtures of Gaussians.

Suggested Citation

  • Jos'e Moran & Massimo Riccaboni, 2024. "Compositional Growth Models," Papers 2404.07935, arXiv.org.
    • Handle: RePEc:arx:papers:2404.07935
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    References listed on IDEAS

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    1. Sergey V. Buldyrev & Jakub Growiec & Fabio Pammolli & Massimo Riccaboni & H. Eugene Stanley, 2007. "The Growth of Business Firms: Facts and Theory," Journal of the European Economic Association, MIT Press, vol. 5(2-3), pages 574-584, 04-05.
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