Berlin 2015 – scientific programme

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SOE: Fachverband Physik sozio-ökonomischer Systeme

SOE 8: Poster

SOE 8.27: Poster

Monday, March 16, 2015, 18:00–20:00, Poster E

Effect of heterogeneity on scaling laws in a stochastic macroeconomic model — •Cornelia Metzig — Department of Infectious Disease Epidemiology, Imperial College London, UK

Fat-tailed distributions in economic systems are typically explained by multiplicative noise, preferential attachment or similar stochastic models. A stochastic firm growth model introduced previously exhibits such scaling for several quantities, such as firm size and size fluctuations (both temporal and for the ensemble of firms at one time point). Here, the effect of introduction of heterogeneity is studied, i.e. of firms which differ in profitability. This introduces replicator dynamics in which more profitable forms outperform less profitable ones. Besides making the model easier to interpret in the context of macroeconomic agent-based models, heterogeneity affects both nature and exponents of certain scaling laws, which has been studied theoretically and numerically.