This paper presents a tractable dynamic general equilibrium model of income and firm-size distributions. The size and value of firms result from idiosyncratic, firm-level productivity shocks. CEOs can invest in their own firms’ risky stocks or in risk-free assets, implying that the CEO’s...

Using the uniform most powerful unbiased test, we observed the sales distribution of consumer electronics in Japan on a daily basis and report that it follows both a lognormal distribution and a power-law distribution and depends on the state of the market. We show that these switches occur...

Pareto's law states that the distribution of personal income obeys a power-law in the high income range. Its dynamical nature has been little studied hitherto, mostly due to the lack of empirical work. Using an exhaustive list of taxpayers in Japan for two consecutive years, when the economy was...

We find that area and population distributions of nations follow an inverse power-law, as is known for cities, but with a different exponent. To interpret this result, we develop a growth model based on the geometrical properties of partitioning of the plane. The substantial agreement between...

We study multiplicative and affine sequences of real numbers defined byN(j+1)=ζ(j)N(j)+η(j),where {ζ(j)} and {η(j)} are sequences of positive real numbers (in the multiplicative case η(j)=0 for all j). We investigate the conditions under which the leading digits k of {N(j)} have the...

We study the finite-size effects in some scaling systems, and show that the finite number of agents N leads to a cut-off in the upper value of the Pareto law for the relative individual wealth. The exponent α of the Pareto law obtained in stochastic multiplicative market models is crucially...

The AK growth model is a standard endogenous model. This paper first solves the social planner's problem in this model and shows that the steady state is the only solution to this model. The paper then considers several generalizations of the AK model on the side of technology. Unlike the basic...

This paper presents a simple North-South model of endogenous growth, based on learning by doing, which is consistent with the following empirical observations: (i) the price of investment goods relative to consumption goods has been falling for the last 40 years in most industrialized countries,...

This paper deals with an endogenous growth model with vintage capital and, more precisely, with the AK model proposed in [18]. In endogenous growth models the introduction of vintage capital allows to explain some growth facts but strongly increases the mathematical difficulties. So far, in this...

This paper derives necessary and sufficient conditions under which positional preferences do not induce inter-temporal distortions. When labor supply is exogenous, positional preferences for consumption have been shown to be non-distortionary for a class of models. However, it has not been...