Articles producció científica> Gestió d'Empreses

Thermodynamics of firms' growth

  • Dades identificatives

    Identificador: PC:1266
    Autors:
    Plastino, AngeloHernando, RicardoHernando, AlbertoZambrano, EduardoFernández Bariviera, Aurelio
    Resum:
    The distribution of firms’ growth and firms’ sizes is a topic under intense scrutiny. In this paper, we show that a thermodynamic model based on the maximum entropy principle, with dynamical prior information, can be constructed that adequately describes the dynamics and distribution of firms’ growth. Our theoretical framework is tested against a comprehensive database of Spanish firms, which covers, to a very large extent, Spain’s economic activity, with a total of 1 155 142 firms evolving along a full decade. We show that the empirical exponent of Pareto’s law, a rule often observed in the rank distribution of large-size firms, is explained by the capacity of economic system for creating/destroying firms, and that can be used to measure the health of a capitalist-based economy. Indeed, our model predicts that when the exponent is larger than 1, creation of firms is favoured; when it is smaller than 1, destruction of firms is favoured instead; and when it equals 1 (matching Zipf’s law), the system is in a full macroeconomic equilibrium, entailing ‘free’ creation and/or destruction of firms. For medium and smaller firmsizes, the dynamical regime changes, the whole distribution can no longer be fitted to a single simple analytical form and numerical prediction is required. Our model constitutes the basis for a full predictive framework regarding the economic evolution of an ensemble of firms. Such a structure can be potentially used to develop simulations and test hypothetical scenarios, such as economic crisis or the response to specific policy measures.
  • Altres:

    Autor segons l'article: Plastino, Angelo Hernando, Ricardo Hernando, Alberto Zambrano, Eduardo Fernández Bariviera, Aurelio
    Departament: Gestió d'Empreses
    Autor/s de la URV: Fernández Bariviera, Aurelio Zambrano, Eduardo Hernando, Alberto Hernando, Ricardo Plastino, Angelo
    Paraules clau: Statistical thermodynamics Zipf Law firms' growth
    Resum: The distribution of firms’ growth and firms’ sizes is a topic under intense scrutiny. In this paper, we show that a thermodynamic model based on the maximum entropy principle, with dynamical prior information, can be constructed that adequately describes the dynamics and distribution of firms’ growth. Our theoretical framework is tested against a comprehensive database of Spanish firms, which covers, to a very large extent, Spain’s economic activity, with a total of 1 155 142 firms evolving along a full decade. We show that the empirical exponent of Pareto’s law, a rule often observed in the rank distribution of large-size firms, is explained by the capacity of economic system for creating/destroying firms, and that can be used to measure the health of a capitalist-based economy. Indeed, our model predicts that when the exponent is larger than 1, creation of firms is favoured; when it is smaller than 1, destruction of firms is favoured instead; and when it equals 1 (matching Zipf’s law), the system is in a full macroeconomic equilibrium, entailing ‘free’ creation and/or destruction of firms. For medium and smaller firmsizes, the dynamical regime changes, the whole distribution can no longer be fitted to a single simple analytical form and numerical prediction is required. Our model constitutes the basis for a full predictive framework regarding the economic evolution of an ensemble of firms. Such a structure can be potentially used to develop simulations and test hypothetical scenarios, such as economic crisis or the response to specific policy measures.
    Àrees temàtiques: Economics and business Economía y empresa Economia i empresa
    Accès a la llicència d'ús: https://creativecommons.org/licenses/by/3.0/es/
    ISSN: 1742-5689
    Identificador de l'autor: N/A N/A N/A N/A 0000-0003-1014-1010
    Data d'alta del registre: 2016-02-16
    Volum de revista: 12
    Versió de l'article dipositat: info:eu-repo/semantics/publishedVersion
    Enllaç font original: https://royalsocietypublishing.org/doi/full/10.1098/rsif.2015.0789
    URL Document de llicència: https://repositori.urv.cat/ca/proteccio-de-dades/
    DOI de l'article: 10.1098/rsif.2015.0789
    Entitat: Universitat Rovira i Virgili
    Any de publicació de la revista: 2015
    Tipus de publicació: Article Artículo Article
  • Paraules clau:

    Termodinàmica
    Statistical thermodynamics
    Zipf Law
    firms' growth
    Economics and business
    Economía y empresa
    Economia i empresa
    1742-5689
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