Derivation of the distribution from extended Gibrat's law

Employing profits data of Japanese companies in 2002 and 2003, we identify the non-Gibrat's law which holds in the middle profits region. From the law of detailed balance in all regions, Gibrat's law in the high region and the non-Gibrat's law in the middle region, we kinematically derive the profits distribution function in the high and middle range uniformly. The distribution function accurately fits with empirical data without any fitting parameter.

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Year of publication:	2006
Authors:	Ishikawa, Atushi
Published in:	Physica A: Statistical Mechanics and its Applications. - Elsevier, ISSN 0378-4371. - Vol. 367.2006, C, p. 425-434
Publisher:	Elsevier
Subject:	Econophysics \| Pareto law \| Gibrat law \| Detailed balance

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010591743