Derivation of the distribution from extended Gibrat's law

Atushi Ishikawa

Physica A: Statistical Mechanics and its Applications, 2006, vol. 367, issue C, 425-434

Abstract: 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.

Keywords: Econophysics; Pareto law; Gibrat law; Detailed balance (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:367:y:2006:i:c:p:425-434

DOI: 10.1016/j.physa.2005.12.005

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