TY  - JOUR
VL  - 102
A1  - Pammolli, Fabio
A1  - Fu, Dongfeng
A1  - Buldyrev, Sergey V.
A1  - Riccaboni, Massimo
A1  - Matia, Kaushik
A1  - Yamasaki, Kazuko
A1  - Stanley, H. Eugene
PB  - National Academy of Sciences
SP  - 18801
Y1  - 2005///
JF  - Proceedings of the National Academy of Sciences
IS  - 52
ID  - eprints685
N1  - Cover article
EP  - 18806
SN  - 1091-6490
N2  - We introduce a model of proportional growth to explain the distribution Pg(g) of business-firm growth rates. The model predicts that Pg(g) is exponential in the central part and depicts an asymptotic power-law behavior in the tails with an exponent ? = 3. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. In this article, we test the model at different levels of aggregation in the economy, from products to firms to countries, and we find that the predictions of the model agree with empirical growth distributions and size-variance relationships.
TI  - The growth of business firms: Theoretical framework and empirical evidence
AV  - none
KW  -     proportional growth;
    preferential attachment;
    Laplace distribution

UR  - http://www.pnas.org/content/102/52/18801.abstract
ER  -