2003/12/29 by Corrado Di Guilmi, Di Guilmi, Corrado, Edoardo Gaffeo +3
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #Condensed Matter (cond-mat) #Economic theories and models #FOS: Physical sciences #Theoretical and Computational Physics #cond-mat
paper · pdf · doi:10.48550/arxiv.cond-mat/0312676
APFA4 proceeding, 5 pages
arxiv created 2003/12/29 · openalex publication_date 2003/12/29 · arxiv updated 2009/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Dynamical systems with components whose sizes evolve according to multiplicative stochastic rules have been recently combined with entry and exit processes. We show that the assumptions usually made in modeling exits are at odds with the available evidence. We discuss a recently proposed macroeconomic model with random multiplicative shocks and a mechanism for exit based on bankruptcy, which displays several observed stylized facts for firms' dynamics, like power law distributions for firms' sizes and Laplace distribution for firms' growth rates.