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We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover…

General Economics · Economics 2023-03-01 Emir Malikov , Shunan Zhao

The expression "wage transition" refers to the fact that over the past two or three decades in all developed economies wage increases have levelled off. There has been a widening divergence and decoupling between wages on the one hand and…

General Finance · Quantitative Finance 2017-02-01 Belal Baaquie , Bertrand M. Roehner , Qinghai Wang

The key idea of this model is that firms are the result of an evolutionary process. Based on demand and supply considerations the evolutionary model presented here derives explicitly Gibrat's law of proportionate effects as the result of…

General Finance · Quantitative Finance 2015-06-11 Joachim Kaldasch

Firms compete for clients, creating distributions of market shares ranging from domination by a few giant companies to markets in which there are many small firms. These market structures evolve in time, and may remain stable for many years…

Physics and Society · Physics 2024-01-09 Joseph Hickey

Publicly traded companies are fundamental units of contemporary economies and markets and are important mechanisms through which humans interact with their environments. Understanding the general properties that underlie the processes of…

Physics and Society · Physics 2022-07-07 Jiang Zhang , Christopher P. Kempes , Marcus J. Hamilton , Ruyi Tao , Geoffrey B. West

We study the correlation structure of firm growth rates. We show that most firms are correlated because of their exposure to a common factor but that firms linked through the supply chain exhibit a stronger correlation on average than firms…

Statistical Finance · Quantitative Finance 2023-07-04 Luca Mungo , José Moran

The expansion of global production networks has raised many important questions about the interdependence among countries and how future changes in the world economy are likely to affect the countries' positioning in global value chains. We…

General Economics · Economics 2020-05-20 Olivera Kostoska , Viktor Stojkoski , Ljupco Kocarev

When clustering molecular dynamics (MD) trajectories into a few metastable conformational states, the Markov state models (MSMs) assumption of timescale separation between fast intrastate fluctuations and rarely occurring interstate…

Soft Condensed Matter · Physics 2025-01-17 Sofia Sartore , Franziska Teichmann , Gerhard Stock

Structural change consists of industrial diversification towards more productive, knowledge intensive activities. However, changes in the productive structure bear inherent links with job creation and income distribution. In this paper, we…

General Economics · Economics 2026-05-13 Bernardo Caldarola , Dario Mazzilli , Aurelio Patelli , Angelica Sbardella

This article introduces a novel method for detecting distinctive structural changes in economic data, particularly within frequency distribution tables. The approach identifies significant shifts in the distribution of a variable over time…

Applications · Statistics 2025-09-04 Joanna Dębicka , Edyta Mazurek

We revisit granular models that represent the size of a firm as the sum of the sizes of multiple constituents or sub-units. Originally developed to address the unexpectedly slow reduction in volatility as firm size increases, these models…

General Economics · Economics 2024-06-04 José Moran , Angelo Secchi , Jean-Philippe Bouchaud

Mathematical methods of population genetics and framework of exchangeability provide a Markov chain model for analysis and interpretation of stochastic behaviour of equity markets, explaining, in particular, market shape formation,…

Mathematical Finance · Quantitative Finance 2015-06-24 Sergey Sosnovskiy

We develop an analytically tractable model featuring heterogeneous workers and firms, where labor markets clear through a one-to-many sorting mechanism. Firms determine both the number and composition of their employees, shaping (1) the…

Theoretical Economics · Economics 2026-03-11 Paweł Gola , Haozhou Tang

In this paper, we describe a novel approach, based on Markov jump processes, to model small group conversational dynamics and to predict small group performance. More precisely, we estimate conversational events such as turn taking,…

Social and Information Networks · Computer Science 2012-04-18 Wen Dong , Bruno Lepri , Alex Pentland

Modelling all possible life cycles of a company in a highly competitive economic environment gives a significant advantage to the owner in his business investment activities. This article proposes and analyses a dynamic model of a company's…

General Finance · Quantitative Finance 2019-04-23 O. A. Malafeyev , I. I. Pavlov

The growth of business firms is an example of a system of complex interacting units that resembles complex interacting systems in nature such as earthquakes. Remarkably, work in econophysics has provided evidence that the statistical…

Statistical Finance · Quantitative Finance 2019-01-30 Nathan C. Frey , Sakib Matin , H. Eugene Stanley , Michael Salinger

Most of the modeling approaches used to understand organizational worker mobility are highly stylized, using idealizations such as structureless organizations, indistinguishable workers, and a lack of social bonding of the workers. In this…

Computational Engineering, Finance, and Science · Computer Science 2025-08-12 Bryan Adams , Valentín Vergara Hidd , Daniel Stimpson , Miesha Purcell , Eduardo López

Using the Panel Study of Income Dynamics data on the period 1982-1992, this paper investigates some mechanisms of the labor market in the United States. This market is analyzed as a stable structure constituted of segments which present…

Statistics Theory · Mathematics 2007-06-13 Patrice Gaubert , Marie Cottrell

Understanding and potentially predicting or even controlling urban labour markets represents a great challenge for workers and policy makers alike. Cities are effective engines of economic growth and prosperity and incubate complex dynamics…

Physics and Society · Physics 2022-02-28 Xiangnan Feng , Alex Rutherford

We study the performance of a stochastic algorithm based on the power method that adaptively learns the large deviation functions characterizing the fluctuations of additive functionals of Markov processes, used in physics to model…

Statistical Mechanics · Physics 2023-03-30 Francesco Coghi , Hugo Touchette