English

Derivation of the distribution from extended Gibrat's law

Physics and Society 2009-11-11 v1 General Finance

Abstract

Employing profits data of Japanese companies in 2002 and 2003, we identify the non-Gibrat's law which holds in the middle profits region. From the law of detailed balance in all regions, Gibrat's law in the high region and the non-Gibrat's law in the middle region, we kinematically derive the profits distribution function in the high and middle range uniformly. The distribution function accurately fits with empirical data without any fitting parameter.

Keywords

Cite

@article{arxiv.physics/0508178,
  title  = {Derivation of the distribution from extended Gibrat's law},
  author = {Atushi Ishikawa},
  journal= {arXiv preprint arXiv:physics/0508178},
  year   = {2009}
}

Comments

13 pages, 8 figures