Common Components in Firms' Growth and the Sectors Scaling Puzzle

7 Pages Posted: 25 Sep 2007

See all articles by Robert Axtell

Robert Axtell

George Mason University - Department of Computational Social Science; George Mason University - Department of Economics; Santa Fe Institute - Economics

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics

Antonio Palestrini

University of Teramo

Date Written: January 2006

Abstract

In this paper we show how a simple modification of the Kesten's process (Kesten, 1973), taking into account common and idiosyncratic elements, allows to reconcile the aggregate-sector puzzles on firms' size distribution reported in the literature.

Keywords: Firms' size, common components, Kesten's process

JEL Classification: L11, O41

Suggested Citation

Axtell, Robert and Gallegati, Mauro and Palestrini, Antonio, Common Components in Firms' Growth and the Sectors Scaling Puzzle (January 2006). Available at SSRN: https://ssrn.com/abstract=1016420 or http://dx.doi.org/10.2139/ssrn.1016420

Robert Axtell

George Mason University - Department of Computational Social Science ( email )

4400 University Drive
375 Research Hall
Fairfax, VA 22030
United States

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

Santa Fe Institute - Economics ( email )

1399 Hyde Park Rd
Santa Fe, NM 87501
United States

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

Antonio Palestrini (Contact Author)

University of Teramo ( email )

Viale Crucioli 122
Via R. Balzarini 1, Località Colleparco
64100 Teramo
Italy

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