Stable power laws in variable economies; Lotka-Volterra implies Pareto-Zipf

S. Solomon*, P. Richmond

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

82 Scopus citations

Abstract

In recent years we have found that logistic systems of the Generalized Lotka-Volterra type (GLV) describing statistical systems of auto-catalytic elements posses power law distributions of the Pareto-Zipf type. In particular, when applied to economic systems, GLV leads to power laws in the relative individual wealth distribution and in market returns. These power laws and their exponent α are invariant to arbitrary variations in the total wealth of the system and to other endogenously and exogenously induced variations.

Original languageEnglish
Pages (from-to)257-261
Number of pages5
JournalEuropean Physical Journal B
Volume27
Issue number2
DOIs
StatePublished - 2 May 2002

Keywords

  • 87.23.-n Ecology and evolution
  • 89.65.Gh Economics, business, and financial markets
  • 89.75.Da Systems obeying scaling laws

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