Aggregate “Calculation” in Economic Phenomena: Distributions and Fluctuations
I review recent studies on distributions and fluctuations for personal-income and firm-size in real-economy by using recently available large-data. Specifically explained are Pareto-Zipf laws, Gibrat’s law and detailed-balance, and the fact that they are mutually related in a simple way. These patterns and shapes are not “laws” in physics, but can break down in abnormal situations such as bubble-collapse. These findings provide an important foundation of phenomenology for real-economy. The expression “aggregate calculation” nicely fits into the paradigm of this workshop.
KeywordsPareto-Zipf laws Gibrat’s law detailed-balance income distributions firm-size distributions growth and fluctuation
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