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.

On the irreconcilability of Pareto and Gibrat laws

BOTTAZZI, Giulio
2009-01-01

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.
2009
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11382/5615
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