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We introduce a model of proportional growth to explain the distribution$P(g)$ of business firm growth rates. The model predicts that $P(g)$ is Laplacein the central part and depicts an asymptotic power-law behavior in the tailswith an exponent $\zeta=3$. Because of data limitations, previous studies inthis field have been focusing exclusively on the Laplace shape of the body ofthe distribution. We test the model at different levels of aggregation in theeconomy, from products, to firms, to countries, and we find that the itspredictions are in good agreement with empirical evidence on both growthdistributions and size-variance relationships.Comment: 8 pages, 4 figure

A generalized preferential attachment model for business firms growth rates