The uniqueness of company size distribution function from tent-shaped growth rate distribution
arXiv:physics/0702248 · doi:10.1016/j.physa.2007.04.089
Abstract
We report the proof that the extension of Gibrat's law in the middle scale region is unique and the probability distribution function (pdf) is also uniquely derived from the extended Gibrat's law and the law of detailed balance. In the proof, two approximations are employed. The pdf of growth rate is described as tent-shaped exponential functions and the value of the origin of the growth rate distribution is constant. These approximations are confirmed in profits data of Japanese companies 2003 and 2004. The resultant profits pdf fits with the empirical data with high accuracy. This guarantees the validity of the approximations.
6 pages, 5 figures
References in corpus (8)
- Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States
- Power Laws are Logarithmic Boltzmann Laws
- Power Law Scaling for a System of Interacting Units with Complex Internal Structure
- The Growth of Business Firms: Theoretical Framework and Empirical Evidence
- Temporal evolution of the "thermal" and "superthermal" income classes in the USA during 1983-2001
- Growth and Fluctuations of Personal Income
- Pareto index induced from the scale of companies
- Derivation of the distribution from extended Gibrat's law