Simple laws governing socio-economic variables with complex dynamics
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Long-term [economic] profit (LTP)
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LTP distribution, US listed firms, 2000-2019
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Same data in different histograms: What distribution would fit this?
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t & log-normal don't fit very well, NLN does
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The normal-log-normal (NLN) mixture distribution
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Parameter estimates: differences in 'superstar' effec
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For future research: What are the origins of NLN distribution?
Description:
Explore a lecture on the distribution of long-term profits in US-listed firms from 2000-2019. Delve into the complex dynamics of socio-economic variables and discover how the normal-log-normal (NLN) mixture distribution fits the data better than t and log-normal distributions. Examine parameter estimates and their implications for 'superstar' effects in the economy. Consider future research directions on the origins of the NLN distribution in economic profit data.
A Simple Law for the Distribution of Long-term Profits