Abstract
We apply methods and concepts of statistical physics to the study of economic organizations. We identify robust, universal, characteristics of the time evolution of economic organizations. Specifically, we find the existence of scaling laws describing the growth of the size of these organizations. We study a model assuming a complex evolving internal structure of an organization that is able to reproduce many of the empirical findings.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 127-136 |
| Number of pages | 10 |
| Journal | Physica A: Statistical Mechanics and its Applications |
| Volume | 299 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - Oct 1 2001 |
| Event | Application of Physics in Economic Modelling (NATO ARW) - Prague, Czech Republic Duration: Feb 8 2001 → Feb 10 2001 |
Funding
We thank M. Barthélemy, S.V. Buldyrev, D. Canning, X. Gabaix, S. Havlin, P.Ch. Ivanov, H. Kallabis, Y. Lee, H. Leschhorn, F. Liljeros, M. Luwel, P. Maass, M. Meyer, H. Moed, B. Roehner, M.A. Salinger, M.H.R. Stanley for stimulating discussions. The CPS is supported by NSF and NIH.
Keywords
- Business firms
- Countries
- Dynamics
- GDP
- Growth
- Organizations
- Scaling
- Universality
ASJC Scopus subject areas
- Statistics and Probability
- Condensed Matter Physics