A Model for Scaling in Firms' Size and Growth Rate Distribution

Abstract : We introduce a simple agent-based model which allows us to analyze three stylized facts: a fat-tailed size distribution of companies, a 'tent-shaped' growth rate distribution, the scaling relation of the growth rate variance with firm size, and the causality between them. This is achieved under the simple hypothesis that firms compete for a scarce quantity (either aggregate demand or workforce) which is allocated probabilistically. The model allows us to relate size and growth rate distributions. We compare the results of our model to simulations with other scaling relationships, and to similar models and relate it to existing theory. Effects arising from binning data are discussed.
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Article dans une revue
Physica A: Statistical Mechanics and its Applications, Elsevier, 2014, pp.1-28
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https://hal.archives-ouvertes.fr/hal-00909771
Contributeur : Mirta Gordon <>
Soumis le : mardi 26 novembre 2013 - 18:27:42
Dernière modification le : mercredi 29 novembre 2017 - 15:19:22

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  • HAL Id : hal-00909771, version 1
  • ARXIV : 1304.4311

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Cornelia Metzig, Mirta B. Gordon. A Model for Scaling in Firms' Size and Growth Rate Distribution. Physica A: Statistical Mechanics and its Applications, Elsevier, 2014, pp.1-28. 〈hal-00909771〉

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