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Scaling Laws In The Macroeconomy

Author

Listed:
  • D. DELLI GATTI

    (Institute of Quantitative Methods and Economic Theory, Catholic University of Milan, Largo Gemelli 1, I-20123 Milano, Italy)

  • C. DI GUILMI

    (Department of Economics, Università Politecnica delle Marche, Piazzale Martelli 8, I-60100 Ancona, Italy)

  • M. GALLEGATI

    (Department of Economics, Università Politecnica delle Marche, Piazzale Martelli 8, I-60100 Ancona, Italy)

  • E. GAFFEO

    (Department of Economics and CEEL, University of Trento, Via Inama 5, I-38100 Trento, Italy)

  • G. GIULIONI

    (Department of Quantitative Methods and Economic Theory, "G. D'Annunzio" University of Chieti-Pescara, Via Pindaro 42, I-65127 Pescara, Italy)

  • A. PALESTRINI

    (Department of Law in History and Society, University of Teramo, Via Crucioli 122, I-64100 Teramo, Italy)

Abstract

The practice of detecting power laws and scaling behaviors in economics and finance has gained momentum in the last few years, due to the increased use of concepts and methods first developed in statistical physics. Some disappointment has emerged in the economic profession, however, as regards the models proposed so far to theoretically explain these phenomena. In this paper we aim to address this criticism, showing that scaling behaviors can naturally emerge in a multiagent system with optimizing interacting units characterized by financial fragility.

Suggested Citation

  • D. Delli Gatti & C. Di Guilmi & M. Gallegati & E. Gaffeo & G. Giulioni & A. Palestrini, 2008. "Scaling Laws In The Macroeconomy," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 131-138.
    • Handle: RePEc:wsi:acsxxx:v:11:y:2008:i:01:n:s0219525908001532
    DOI: 10.1142/S0219525908001532
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    References listed on IDEAS

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    1. Xavier Gabaix, 2011. "The Granular Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 79(3), pages 733-772, May.
    2. Yoshi Fujiwara, 2003. "Zipf Law in Firms Bankruptcy," Papers cond-mat/0310062, arXiv.org.
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    Cited by:

    1. Hernan Mondani, 2019. "Sector, industry and inter-organizational movement statistics in the Stockholm Region: informing organizational growth models," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 735-755, March.

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