The uniqueness of company size distribution function from tent-shaped growth rate distribution

We report the proof that the extension of Gibrat's law in the middle scale region is unique and the probability distribution function (pdf) is also uniquely derived from the extended Gibrat's law and the law of detailed balance. In the proof, two approximations are employed. The pdf of growth rate is described as tent-shaped exponential functions and the value of the origin of the growth rate distribution is constant. These approximations are confirmed in profits data of Japanese companies 2003 and 2004. The resultant profits pdf fits with the empirical data with high accuracy. This guarantees the validity of the approximations.Comment: 6 pages, 5 figure

Pareto law and Pareto index in the income distribution of Japanese companies

In order to study the phenomenon in detail that income distribution follows Pareto law, we analyze the database of high income companies in Japan. We find a quantitative relation between the average capital of the companies and the Pareto index. The larger the average capital becomes, the smaller the Pareto index becomes. From this relation, we can possibly explain that the Pareto index of company income distribution hardly changes, while the Pareto index of personal income distribution changes sharply, from a viewpoint of capital (or means). We also find a quantitative relation between the lower bound of capital and the typical scale at which Pareto law breaks. The larger the lower bound of capital becomes, the larger the typical scale becomes. From this result, the reason there is a (no) typical scale at which Pareto law breaks in the income distribution can be understood through (no) constraint, such as the lower bound of capital or means of companies, in the financial system.Comment: 12 pages, 8 figure

Relations between a typical scale and averages in the breaking of fractal distribution

We study distributions which have both fractal and non-fractal scale regions by introducing a typical scale into a scale invariant system. As one of models in which distributions follow power law in the large scale region and deviate further from the power law in the smaller scale region, we employ 2-dim quantum gravity modified by the $R^2$ term. As examples of distributions in the real world which have similar property to this model, we consider those of personal income in Japan over latest twenty fiscal years. We find relations between the typical scale and several kinds of averages in this model, and observe that these relations are also valid in recent personal income distributions in Japan with sufficient accuracy. We show the existence of the fiscal years so called bubble term in which the gap has arisen in power law, by observing that the data are away from one of these relations. We confirm, therefore, that the distribution of this model has close similarity to those of personal income. In addition, we can estimate the value of Pareto index and whether a big gap exists in power law by using only these relations. As a result, we point out that the typical scale is an useful concept different from average value and that the distribution function derived in this model is an effective tool to investigate these kinds of distributions.Comment: 17 pages, latex, 13 eps figure

Derivation of the distribution from extended Gibrat's law

Employing profits data of Japanese companies in 2002 and 2003, we identify the non-Gibrat's law which holds in the middle profits region. From the law of detailed balance in all regions, Gibrat's law in the high region and the non-Gibrat's law in the middle region, we kinematically derive the profits distribution function in the high and middle range uniformly. The distribution function accurately fits with empirical data without any fitting parameter.Comment: 13 pages, 8 figure