eprintid: 647 rev_number: 16 eprint_status: archive userid: 2 dir: disk0/00/00/06/47 datestamp: 2011-06-30 14:26:09 lastmod: 2013-11-21 13:05:56 status_changed: 2011-06-30 14:26:09 type: article metadata_visibility: show item_issues_count: 0 creators_name: Pammolli, Fabio creators_name: Fu, Dongfeng creators_name: Buldyrev, Sergey V. creators_name: Riccaboni, Massimo creators_name: Matia, Kaushik creators_name: Yamasaki, Kazuko creators_name: Stanley, H. Eugene creators_id: f.pammolli@imtlucca.it creators_id: creators_id: creators_id: massimo.riccaboni@imtlucca.it creators_id: creators_id: creators_id: title: A generalized preferential attachment model for business firms growth rates: I. Empirical evidence ispublished: pub subjects: HB subjects: HG subjects: QC divisions: EIC full_text_status: none note: PACS. 89.75.Fb Structures and organization in complex systems - 05.70.Ln Nonequilibrium and irreversible thermodynamics - 89.75.Da Systems obeying scaling laws - 89.65.Gh Economics; econophysics, financial markets, business and management abstract: We introduce a model of proportional growth to explain the distribution P(g) of business firm growth rates. The model predicts that P(g) is Laplace in the central part and depicts an asymptotic power-law behavior in the tails with an exponent ΞΆ = 3. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. We test the model at different levels of aggregation in the economy, from products, to firms, to countries, and we find that the predictions are in good agreement with empirical evidence on both growth distributions and size-variance relationships. date: 2007 date_type: published publication: The European Physical Journal B volume: 57 number: 2 publisher: Springer pagerange: 127-130 id_number: 10.1140/epjb/e2007-00133-4 refereed: TRUE issn: 1434-6028 official_url: http://dx.doi.org/10.1140/epjb/e2007-00133-4 citation: Pammolli, Fabio and Fu, Dongfeng and Buldyrev, Sergey V. and Riccaboni, Massimo and Matia, Kaushik and Yamasaki, Kazuko and Stanley, H. Eugene A generalized preferential attachment model for business firms growth rates: I. Empirical evidence. The European Physical Journal B, 57 (2). pp. 127-130. ISSN 1434-6028 (2007)