Open AccessCompany Size Distributions as Economy Aggregated Indicators
Author(s) -
Juan Carlos Pérez Mesa,
Emilio Galdeano Gómez
Publication year - 2009
Publication title -
research in applied economics
Language(s) - English
Resource type - Journals
ISSN - 1948-5433
DOI - 10.5296/rae.v1i1.123
Subject(s) - zipf's law , proxy (statistics) , economics , distribution (mathematics) , mandelbrot set , income distribution , competition (biology) , econometrics , interpretation (philosophy) , economy , computer science , statistics , inequality , mathematics , mathematical analysis , ecology , fractal , biology , programming language
This paper studies the distribution of company income and provides evidence that income statistics follow a universal law (Zipf-Mandelbrot) and the parameters of this distribution gather relevant information as a proxy of the state's economy. This article contributes to the economic interpretation of these parameters. We find that they are robust indicators of the structure of an economy and should be taken into account when designing policies to promote competition.