Productivity Dispersion: Facts, Theory, and Implications

Hideaki Aoyama; Hiroshi Yoshikawa; Hiroshi Iyetomi; Yoshi Fujiwara

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arXiv · 0805.2792

Productivity Dispersion: Facts, Theory, and Implications

Hideaki Aoyama·Hiroshi Yoshikawa·Hiroshi Iyetomi·Yoshi Fujiwara

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Abstract

We study productivity dispersions across workers, firms and industrial sectors. Empirical study of the Japanese data shows that they all obey the Pareto law, and also that the Pareto index decreases with the level of aggregation. In order to explain these two stylized facts, we propose a theoretical framework built upon the basic principle of statistical physics. In this framework, we employ the concept of superstatistics which accommodates fluctuations of aggregate demand.

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q-fin.GN cond-mat.stat-mech physics.data-an physics.soc-ph q-fin.ST

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Hideaki Aoyama, Hiroshi Yoshikawa, Hiroshi Iyetomi, Yoshi Fujiwara. 2008-05-19. Productivity Dispersion: Facts, Theory, and Implications. https://arxiv.org/abs/0805.2792

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