Universal features in the growth dynamics of complex organizations
Statistical Mechanics
2009-10-31 v1 General Finance
Abstract
We analyze the fluctuations in the gross domestic product (GDP) of 152 countries for the period 1950--1992. We find that (i) the distribution of annual growth rates for countries of a given GDP decays with ``fatter'' tails than for a Gaussian, and (ii) the width of the distribution scales as a power law of GDP with a scaling exponent . Both findings are in surprising agreement with results on firm growth. These results are consistent with the hypothesis that the evolution of organizations with complex structure is governed by similar growth mechanisms.
Keywords
Cite
@article{arxiv.cond-mat/9804100,
title = {Universal features in the growth dynamics of complex organizations},
author = {Youngki Lee and Luis A. N. Amaral and David Canning and Martin Meyer and H. Eugene Stanley},
journal= {arXiv preprint arXiv:cond-mat/9804100},
year = {2009}
}
Comments
4 pages, 7 ps figures, using Latex2e with epsf rotate and multicol style files. Submitted to PRL