https://doi.org/10.1140/epjb/e20020152
Stable power laws in variable economies; Lotka-Volterra implies Pareto-Zipf
1
Racah Institute of Physics, Hebrew University of Jerusalem, 91904 Jerusalem, Israel
2
Department of Physics, Trinity College Dublin 2, Ireland
Corresponding authors: a sorin@cc.huji.ac.il - b richmond@tcd.ie
Received:
31
December
2001
Published online: 15 May 2002
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 
are invariant to arbitrary variations in
the total wealth of the system and to other endogenously and exogenously
induced variations.
PACS: 87.23.-n – Ecology and evolution / 89.75.Da – Systems obeying scaling laws / 89.65.Gh – Economics, business, and financial markets
© EDP Sciences, Società Italiana di Fisica, Springer-Verlag, 2002
