The mean-field approximation model of company's income growth

Abstract

We introduce a mean-field type approximation for description of company's income statistics. Utilizing huge company data we show that a discrete version of Langevin equation with additive and multiplicative noises can appropriately describe the time evolution of a company's income fluctuation in statistical sense. The Zipf's law of income distribution is shown to be hold in a steady-sate widely, and country-dependence of income distribution can also be nicely implemented in our numerical simulation.

10 pages, 7 figures, submitted to Physics A

References in corpus (3)

• Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States
• Power Laws of Wealth, Market Order Volumes and Market Returns
• Finite market size as a source of extreme wealth inequality and market instability

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