On the irreconcilability of Pareto and Gibrat laws
Abstract
If business firms face a multiplicative growth process in which their growth rates are Laplace distributed and independent from their sizes, the size cannot be distributed according to a stationary Pareto distribution. Recent contributions, using formal arguments, seem to contrast with these statements. We prove that the proposed formal results are wrong.
- Publication:
-
Physica A Statistical Mechanics and its Applications
- Pub Date:
- April 2009
- DOI:
- 10.1016/j.physa.2008.12.031
- Bibcode:
- 2009PhyA..388.1133B