Yard-Sale exchange on networks: Wealth sharing and wealth appropriation

Yard-Sale (YS) is a stochastic multiplicative wealth-exchange model with two phases: a stable one where wealth is shared, and an unstable one where wealth condenses onto one agent. YS is here studied numerically on 1d rings, 2d square lattices, and random graphs with variable average coordination, comparing its properties with those in mean field (MF). Equilibrium properties in the stable phase are almost unaffected by the introduction of a network. Measurement of decorrelation times in the stable phase allow us to determine the critical interface with very good precision, and it turns out to be the same, for all networks analyzed, as the one that can be analytically derived in MF. In the unstable phase, on the other hand, dynamical as well as asymptotic properties are strongly network-dependent. Wealth no longer condenses on a single agent, as in MF, but onto an extensive set of agents, the properties of which depend on the network. Connections with previous studies of coalescence of immobile reactants are discussed, and their analytic predictions are successfully compared with our numerical results.Comment: 10 pages, 7 figures. Submitted to JSTA

Analysis of labor productivity using large-scale data of firm's financial statements

We investigated labor productivity distribution by analyzing large-scale financial statement data consisting of listed and unlisted Japanese firms to clarify the characteristics of the Japanese labor market. Both high and low productivity sides of the labor productivity distribution follows the power-law distribution. Large inequality in the low productivity side was observed only for the manufacturing sectors in Japan fiscal year (JFY) 1999 and observed for both the manufacturing and non-manufacturing sectors in JFY 2002. The decline in the Japanese GDP in JFY 1999 and JFY 2002 were coincided with the large inequality in the low productivity side of the distribution. A lower peak was found for all non-manufacturing sectors. This might be the origin of the low productivity of the non-manufacturing sectors reported in recent economic studies

A Paradigm Shift from Production Function to Production Copula: Statistical Description of Production Activity of Firms

Heterogeneity of economic agents is emphasized in a new trend of macroeconomics. Accordingly the new emerging discipline requires one to replace the production function, one of key ideas in the conventional economics, by an alternative which can take an explicit account of distribution of firms' production activities. In this paper we propose a new idea referred to as production copula; a copula is an analytic means for modeling dependence among variables. Such a production copula predicts value added yielded by firms with given capital and labor in a probabilistic way. It is thereby in sharp contrast to the production function where the output of firms is completely deterministic. We demonstrate empirical construction of a production copula using financial data of listed firms in Japan. Analysis of the data shows that there are significant correlations among their capital, labor and value added and confirms that the values added are too widely scattered to be represented by a production function. We employ four models for the production copula, that is, trivariate versions of Frank, Gumbel and survival Clayton and non-exchangeable trivariate Gumbel; the last one works best.

Gibrat and pareto-zipf revisited with european firms

A firms growth and failure are the two sides of the same coin. This paper reports new phenomenological findings for firm size distribution and growth, and bankruptcy. This paper is based on [Y. Fujiwara et al., Physica A 335 (2004) 197] and on [Y. Fujiwara, Physica A 337 (2004) 219]. See also these proceedings for kinematical relationship between Pareto-Zipf and Gibrat's laws. © 2004 Elsevier B.V. All rights reserved

Correlated performance of firms in a transaction network

Complex network, Firm activity, Network growth, Connectivity, Econophysics,