A stochastic model of firm growth

Giulio Bottazzi and Angelo Secchi

Physica A: Statistical Mechanics and its Applications, 2003, vol. 324, issue 1, 213-219

Abstract: Recently from analyses on different databases the tent-shape of the distribution of firm growth rates has emerged as a robust and universal characteristic of the time evolution of corporates. We add new evidence on this topic and we present a new stochastic model that, under rather general assumptions, provides a robust explanation for the observed regularity.

Keywords: Business firm growth; Polya's urn; Laplace distribution (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:324:y:2003:i:1:p:213-219

DOI: 10.1016/S0378-4371(02)01889-7

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