IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1003.2321.html
   My bibliography  Save this paper

Micro-Macro Relation of Production - The Double Scaling Law for Statistical Physics of Economy -

Author

Listed:
  • Hideaki Aoyama
  • Yoshi Fujiwara
  • Mauro Gallegati

Abstract

We show that an economic system populated by multiple agents generates an equilibrium distribution in the form of multiple scaling laws of conditional PDFs, which are sufficient for characterizing the probability distribution. The existence of the double scaling law is demonstrated empirically for the sales and the labor of one million Japanese firms. Theoretical study of the scaling laws suggests lognormal joint distributions of sales and labor and a scaling law for labor productivity, both of which are confirmed empirically. This framework offers characterization of the equilibrium distribution with a small number of scaling indices, which determine macroscopic quantities, thus setting the stage for an equivalence with statistical physics, bridging micro- and macro-economics.

Suggested Citation

  • Hideaki Aoyama & Yoshi Fujiwara & Mauro Gallegati, 2010. "Micro-Macro Relation of Production - The Double Scaling Law for Statistical Physics of Economy -," Papers 1003.2321, arXiv.org.
    • Handle: RePEc:arx:papers:1003.2321
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1003.2321
    File Function: Latest version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Aoyama,Hideaki & Fujiwara,Yoshi & Ikeda,Yuichi & Iyetomi,Hiroshi & Souma,Wataru Preface by-Name:Yoshikawa,Hiroshi, 2010. "Econophysics and Companies," Cambridge Books, Cambridge University Press, number 9780521191494, January.
    2. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hosseiny, Ali & Gallegati, Mauro, 2017. "Role of intensive and extensive variables in a soup of firms in economy to address long run prices and aggregate data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 470(C), pages 51-59.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yoshi FUJIWARA & Hideaki AOYAMA & Mauro GALLEGATI, 2012. "Scaling Laws in Labor Productivity," Discussion papers 12040, Research Institute of Economy, Trade and Industry (RIETI).
    2. Feng, Andy & Graetz, Georg, 2017. "A question of degree: The effects of degree class on labor market outcomes," Economics of Education Review, Elsevier, vol. 61(C), pages 140-161.
    3. Marcia M Schafgans & Victoria Zinde-Walshyz, 2008. "Smoothness Adaptive AverageDerivative Estimation," STICERD - Econometrics Paper Series 529, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    4. Philipp Ratz, 2022. "Nonparametric Value-at-Risk via Sieve Estimation," Papers 2205.07101, arXiv.org.
    5. Fernando Antonio Slaibe Postali, 2016. "Oil windfalls and X-inefficiency: evidence from Brazil," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 699-718, October.
    6. Jochmans, Koen, 2015. "Multiplicative-error models with sample selection," Journal of Econometrics, Elsevier, vol. 184(2), pages 315-327.
    7. De Witte, K. & Rogge, N., 2009. "Accounting for exogenous influences in a benevolent performance evaluation of teachers," Working Papers 15, Top Institute for Evidence Based Education Research.
    8. Ural Marchand, Beyza, 2012. "Tariff pass-through and the distributional effects of trade liberalization," Journal of Development Economics, Elsevier, vol. 99(2), pages 265-281.
    9. Ghosh, Asim & Chatterjee, Arnab & Inoue, Jun-ichi & Chakrabarti, Bikas K., 2016. "Inequality measures in kinetic exchange models of wealth distributions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 451(C), pages 465-474.
    10. Ali Hosseiny & Mohammad Bahrami & Antonio Palestrini & Mauro Gallegati, 2016. "Metastable Features of Economic Networks and Responses to Exogenous Shocks," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-22, October.
    11. Schwiebert, Jörg, 2012. "Semiparametric Estimation of a Sample Selection Model in the Presence of Endogeneity," Hannover Economic Papers (HEP) dp-504, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    12. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    13. Duncan, Roberto, 2016. "Does the US current account show a symmetric behavior over the business cycle?," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 202-219.
    14. Abhijit Sharma & Alastair Bailey & Iain Fraser, 2011. "Technology Adoption and Pest Control Strategies Among UK Cereal Farmers: Evidence from Parametric and Nonparametric Count Data Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 73-92, February.
    15. Phillips, Peter C.B. & Li, Degui & Gao, Jiti, 2017. "Estimating smooth structural change in cointegration models," Journal of Econometrics, Elsevier, vol. 196(1), pages 180-195.
    16. Zhu, Rong, 2011. "NILS Working paper no 170. The impact of major--job mismatch on college graduates' early career earnings," NILS Working Papers 26072, National Institute of Labour Studies.
    17. Shahbaz, Muhammad & Shafiullah, Muhammad & Papavassiliou, Vassilios G. & Hammoudeh, Shawkat, 2017. "The CO2–growth nexus revisited: A nonparametric analysis for the G7 economies over nearly two centuries," Energy Economics, Elsevier, vol. 65(C), pages 183-193.
    18. Bouezmarni, Taoufik & Rombouts, Jeroen V.K., 2010. "Nonparametric density estimation for positive time series," Computational Statistics & Data Analysis, Elsevier, vol. 54(2), pages 245-261, February.
    19. Filipe Campante & Quoc-Anh Do & Bernardo Guimaraes, 2014. "Capital Cities, Conflict, and Misgovernance: Theory and Evidence," SciencePo Working papers hal-03460226, HAL.
    20. repec:wdi:papers:2011-1029 is not listed on IDEAS
    21. Brennan Thompson, 2010. "Statistical inference for vector measures of inequality and poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 451-462, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1003.2321. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.