Luís A. Nunes Amaral

Professor of Engineering Sciences and Applied Mathematics
Professor of Medicine (by courtesy)
Professor of Molecular Biosciences (by courtesy)
Professor of Physics & Astronomy (by courtesy)

Chemical & Biological Engineering
2145 Sheridan Road (Room E136)
Evanston, IL 60208, US
Phone: (847) 491-7850

Universal features in the growth dynamics of complex organizations

Lee YK, Amaral LAN, Canning D, Meyer M, Stanley HE
Physical Review Letters 81, 3275-3278 (1998)
Times cited: 131

Abstract

We analyze the fluctuations in the gross domestic product (GDP) of 152 countries for the period 1950-1992. We find that (i) the distribution of annual growth rates for countries of a given GDP decays with "fatter" tails than for a Gaussian, and (ii) the width of the distribution scales as a power law of GDP with a scaling exponent beta approximate to 0.15. Both findings are in surprising agreement with results on firm growth. These results are consistent with the hypothesis that the evolution of organizations with complex structure is governed by similar growth mechanisms.