Giulio Bottazzi

Productivity, Profitability and Financial Fragility: Evidence from Italian Business Firms

The size distribution and growth rate dynamics of U.S. companieshave been extensively studied by many authors. In this paper,using the COMPUSTAT database, we extend the analysis todisaggregated data,...

Giulio Bottazzi, Angelo Secchi, Federico Tamagni

In this work we investigate two crucial dimensions of firms’ structure and dynamics, that is profitability and productivity performance. The empirical distributions and the associated persistence...

Financial Fragility and Growth Dynamics of Italian Business Firms

Giulio Bottazzi, Angelo Secchi, Federico Tamagni

This work explores a number of properties investigated in the empirical literature on firm size and growth dynamics. We study (i) the distribution and the autoregressive structure of firm size; (ii)...

Price and Wealth Dynamics in a Speculative Market with an Arbitrary Number of Generic Technical Traders

Mikhail Anufriev, Giulio Bottazzi

We consider a simple pure exchange economy with two assets, one riskless, yielding a constant return, and one risky, paying a stochastic dividend, and we assume trading to take place in discrete time...

Price and Wealth Dynamics in a Speculative Market with an Arbitrary Number of Generic Technical Trading Strategies

Giulio Bottazzi, Mikhail Anufriev

We consider a simple pure exchange economy with two assets, one riskless, yielding a constant return, and one risky, paying a stochastic dividend, and we assume trading to take place in discrete time...

Expectations structure in asset pricing experiments

Adaptive Learning and Emergent Coordination in Minority Games

Notwithstanding the recognized importance of traders’ expectations in characterizing the observed market dynamics, for instance the formation of speculative bubbles and crashes on financial...

Giulio Bottazzi, Giovanna Devetag, Giovanni Dosi

The work studies the properties of a coordination game in which agents repeatedly compete to be in the population minority. The game reflects some essential features of those economic situations in...

Processes of corporate growth in the evolution of an innovation-driven industry. The case of pharmaceuticals.

Giulio Bottazzi, Giovanni Dosi, Marco Lippi, Fabio Pammolli, Massimo Riccaboni

The work studies the processes of growth of the world top 150 pharmaceutical firms, on the grounds of an original database which allows also disaggregate analysis at the level of single therapeutical...

Firm Diversification and the Law of Proportionate Effect

Innovation and Corporate Growth in the Evolution of the Drug Industry

The paper presents an analysis performed over the worldwide top 150 firms in the pharmaceutical industry. It begins with a test of the Gibrat's Law of Proportionate Effect finding, in line with...

Giulio Bottazzi, Giovanni Dosi, Marco Lippi, Fabio Pammolli, Massimo Riccaboni

The work studies the processes of growth of the world top 150 pharmaceutical firms, on the grounds of an original database which allows also disaggregate analysis at the level of single therapeutical...

Modes of Knowledge Accumulation, Entry Regimes and Patterns of Industrial Evolution

Giulio Bottazzi, Giovanni Dosi, Gaia Rocchetti

In this work we explore the interplay between entry, selection and innovative learning as determinants of industrial evolution. We propose a model aimed to capture the essential features of learning...

Corporate Growth and Industrial Structure. Some Evidence from the Italian Manufacturing Industry

Giulio Bottazzi, Elena Cefis, Giovanni Dosi

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On the Ubiquitous Nature of the Agglomeration Economies and their Diverse Determinants: Some Notes.

Giulio Bottazzi, Giovanni Dosi, Giorgio Fagiolo

This highly preliminary work attempts to study the multiple drivers of agglomeration phenomena in contemporary economies. First, we propose a tentative taxonomy of agglomeration drivers in which the...

Coordination and Self-Organization in Minority Games: Experimental Evidence

A Simple Micro-Model of Market Dynamics Part I: The "Homogenous Agents" Deterministic Limit

This work presents experimental results on a coordination game in which agents must repeatedly choose between two sides, and a positive fixed payoff is assigned only to agents who pick the...

On the Laplace Distribution of Firms Growth Rates

In this paper we present a simple agent based model aimed to the qualitative description of some ``stylized facts'' typical of financial markets. The framework is a simple two assets model: a...

Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence

A very robust stylized fact has recently emerged concerning the distribution of growth rates of manufacturing business firms. We briefly review past analysis and present new evidence on this topic...

Giulio Bottazzi, Giorgio Fagiolo, Giovanni Dosi

Economies of agglomeration are central in understanding the emergence of industrial clustering. However, existing models that incorporate economies of agglomeration to explain industrial...

Institutional Architectures and Behavioural Ecologies in the Dynamics of Financial Markets: a Preliminary Investigation

Giulio Bottazzi, Giovanni Dosi, Igor Rebesco

The paper compares the properties of market dynamics, under different trading protocols. At an empirical level, we present some evidence stemming from the comparison between different intra-daily...

Sectoral Specifities in the Dynamics of U.S. Manufacturing Firms

Expectations Structure in Asset Pricing Experiments

The size distribution and growth rates dynamics of U.S. manufacturing firms have been extensively studied by many authors. In this paper, using the COMPUSTAT database, we extend the analysis to...

Giulio Bottazzi, Maria Giovanna Devetag

Notwithstanding the recognized importance of traders expectations incharacterizing the observed market dynamics, for instance theformation of speculative bubbles and crashes on financial...

Invariances and Diversities in the Evolution of Manufacturing Industries

Giulio Bottazzi, Elena Cefis, Giovanni Dosi, Angelo Secchi

In this work we explore some basic properties of the size distributions of firms and of their growth processes both at aggregate and disaggregate levels. First, we investigate which properties of...

Some Statistical Investigations on the Nature and Dynamics of Electricity Prices

Giulio Bottazzi, Sandro Sapio, Angelo Secchi

It is widely accepted that in liberalized electricity markets log-returns display fat-tailed densities. Besides qualitative assessments, so far precise characterizations of the shape of the...

Sectoral and Geographical Specificities in the Spatial Structure of Economic Activities

Giulio Bottazzi, Giovanni Dosi, Giorgio Fagiolo, Angelo Secchi

This work explores the spatial structure of location of production activities. We try to disentangle location- from sector-specific drivers in the dynamic process of spatial agglomeration. We argue...

Asset Pricing Model with Heterogeneous Investment Horizons

Mikhail Anufriev, Giulio Bottazzi

In this paper we study the dynamics of a simple asset pricing model describing the trading activity of heterogeneous agents in a "stylized" market. The economy in the model contains two assets: a...

Price and Wealth Asymptotic Dynamics with CRRA Technical Trading Strategies

Mikhail Anufriev, Giulio Bottazzi, Francesca Pancotto

In this paper we study the dynamics of a simple asset pricing model describing the trading activity of heterogeneous agents in a "stylized" market. The economy in the model contains two assets: a...

Characterizing the Production Process: A Disaggregated Analysis of Italian Manufacturing Firms

Giulio Bottazzi, Marco Grazzi, Angelo Secchi

This paper provides a description of the production process by comparing different frameworks in which to analyze the relations between inputs and output. The analysis is performed on a...

Subbotools User's Manual

Maximum Likelihood Estimation of the Symmetric and Asymmetric Exponential Power Distribution

The SUBBOTOOLS package is intended as an help to the use of the Subbotin family of probability densities in a statistical analysis environment. The package contains various programs for the maximum...

Behavioral Consistent Market Equilibria under Procedural Rationality

We introduce a new 5-parameter family of distributions, the Asymmetric Exponential Power (AEP), able to cope with asymmetries and leptokurtosis and at the same time allowing for a continuous...

Mikhail Anufriev, Giulio Bottazzi

In this paper we analyze a dynamic, asset pricing model where an arbitrary number of heterogeneous, procedurally rational investors divide their wealth between two assets. Both fundamental dividend...

Wage structure in Italian Manufacturing firms

Giulio Bottazzi, Marco Grazzi

This paper jointly considers some pieces of evidence regarding peculiarities of industries' structure which are often separately addressed. Italian industrial sectors are known to be characterized by...

On the Pareto Type III distribution

Modeling Industrial Evolution in Geographical Space

This short note analyzes the distributional properties of Pareto Type III random variables. We introduce a three parameters version of the orignal two parameters distribution proposed by Pareto and...

Giulio Bottazzi, Giovanni Dosi, Giorgio Fagiolo, Angelo Secchi

In this paper we study a class of evolutionary models of industrial agglomeration with local positive feedbacks, which allow for a wide set of empirically-testable implications. Their roots rest in...

On the Irreconcilability of Pareto and Gibrat Laws

A comment on the relationship between firms' size and growth rate

If business firms face a multiplicative growth process in which their growth rates are independent from their sizes, then these sizes cannot be distributed according to a stationary Pareto...

Assessing the Impact of Credit Ratings and Economic Performance on Firm Default

Since the seminal work of Pareto, many empirical analyses suggested that the distribution of firms size is characterized by an asymptotic power like behavior. At the same time, recent investigations...

Giulio Bottazzi, Marco Grazzi, Angelo Secchi, Federico Tamagni

The study of firms' default has attracted wide interest among both practitioners and scholars. However, attention has often been limited to a relatively small set of financial variables. In this...

On the relationship between firms' size and growth rate

Heterogeneous Investment Horizons in a Simple Asset Pricing Model

Since the seminal work of Pareto, many empirical analyses suggestedthat the distribution of firms size is characterized by an asymptoticpower like behavior. At the same time, several investigations...

Giulio Bottazzi, Mikhail Anoufriev

In this paper we study the dynamics of a simple asset pricing model describing the trading activity of heterogeneous agents in a ''stylized'' market. The economy in the model contains two assets: a...

Price and Wealth Dynamics in an Agent-Based Model with Heterogeneous Evolving Strategies

Giulio Bottazzi, Mikhail Anoufriev

We consider a simple asset-pricing model with one risky and one riskless asset in discrete time. In each trading period heterogeneous boundedly rational agents form their individual demand for the...

Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence

Giulio Bottazzi, Giorgio Fagiolo, Giovanni Dosi

Industrial Clustering, Economies of Agglomeration, Firm Locational Choice, Industry Dynamics, Inter-Sectoral Differences.

Localized technological externalities and the geographical distribution of firms

Giulio Bottazzi, Pietro Dindo

This letter investigates the role of technological externalities on the geographical distribution of firms. In an analytically solvable model, we show how the location of economic activities is...

Equilibria, stability and asymptotic dominance in a speculative market with heterogeneous traders

Anufriev, Mikhail, Bottazzi, Giulio, Pancotto, Francesca

Does Variance matter? Expectations of price return and variability in an asset pricing experiment.

Giulio Bottazzi, Giovanna Devetag, Francesca Pancotto

In this work we describe a laboratory experiment on the emergence and coordination of expectations in a pure exchange framework. We consider a simple two asset economy with a riskless bond and a...

Explaining the Distribution of Firm Growth Rates

Innovation and corporate growth in the evolution of the drug industry

Empirical analyses on aggregated datasets have revealed a common exponential behavior in the shape of the probability density of corporate growth rates. We present clear-cut evidence on this topic...

Bottazzi, Giulio, Dosi, Giovanni, Lippi, Marco, Pammolli, Fabio, Riccaboni, Massimo

Institutional architectures and behavioral ecologies in the dynamics of financial markets

Bottazzi, Giulio, Dosi, Giovanni, Rebesco, Igor

Why are distributions of firm growth rates tent-shaped?

Bottazzi, Giulio, Secchi, Angelo

Growth and Diversification Patterns of the Worldwide Pharmaceutical Industry

Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies

In this paper we present a description of the growth and diversification patterns of the top firms in the worldwide pharmaceutical industry. We apply parametric and non-parametric methods to the...

Coordination and self-organization in minority games: experimental evidence

The size distribution and growth rate dynamics of U.S. companies have been extensively studied by many authors. In this paper, using the COMPUSTAT database, we extend the analysis to disaggregated...

Corporate Growth and Industrial Dynamics: Evidence from French Manufacturing

Experimental Economics, Expectations, Coordination, Asset pricing

Giulio Bottazzi, Alex Coad, Nadia Jacoby, Angelo Secchi

We report several characteristics of industrial dynamics, including the firm size distribution, Gibrat's Law, and also the distribution of growth rates and their autocorrelation. We use a variety of...

Explaining the Distribution of Firms Growth Rates

Gibrat's Law and diversification

Empirical analyses on aggregated datasets have revealed a common exponential behavior in the shape of the probability density of the corporate growth rates. We present clearcut evidence on this topic...

Corporate growth and industrial structures: some evidence from the Italian manufacturing industry

This article presents an analysis of the growth patterns of the worldwide top 200 firms in the pharmaceutical industry. A test of the Gibrat's Law of Proportionate Effect is performed and we find, in...

Giulio Bottazzi, Elena Cefis, Giovanni Dosi

This work analyses the properties of corporate growth in a large longitudinal sample of Italian manufacturing firms. In particular, it focuses on the statistical properties of growth rates and on the...

Modes of Knowledge Accumulation, Entry Regimes and Patterns of Industrial Evolution.

Bottazzi, Giulio, Dosi, Giovanni, Rocchetti, Gaia

This paper explores the interplay between entry, selection and innovative learning as determinants of industrial evolution. It proposes a model aimed at capturing some essential features of learning...

Productivity, profitability and financial performance

Giulio Bottazzi, Angelo Secchi, Federico Tamagni

This work presents a comparative analysis of two crucial dimensions of firms’ performance: profitability and productivity. The characteristics of their empirical distribution and the associated...

Expectations Structure in Asset Pricing Experiments.

Sectoral and geographical specificities in the spatial structure of economic activities

Notwithstanding the recognized importance of traders' expectations in characterizing the observed market dynamics, for instance the formation of speculative bubbles and crashes on financial markets,...

Bottazzi, Giulio, Dosi, Giovanni, Fagiolo, Giorgio, Secchi, Angelo

This work explores the spatial distribution of productive activities in the Italian manufacturing industry. We propose an econometric model which tries to disentangle location-specific from sectoral...

Adaptive Learning and Emergent Coordination in Minority Games.

Giulio Bottazzi, Giovanna Devetag, Giovanni Dosi

The paper explores through simulations the efficiency properties of large group minority games under different hypotheses concerning the agents degree of rationality, the amount of information...

Expectations Structure in Asset Pricing Experiments.

Coordination and Self-Organization in Minority Games: Experimental Evidence.

Notwithstanding the recognized importance of traders' expectations in characterizing the observed market dynamics, for instance the formation of speculative bubbles and crashes on financial markets,...

Adaptive Learning and Emergent Coordination in Minority Games.

This work presents experimental results on a coordination game in which agents must repeatedly choose between two sides, and a positive fixed payoff is assigned only to agents who pick the...

Giulio Bottazzi, Giovanna Devetag, Giovanni Dosi

The work studies the properties of a coordination game in which agents repeatedly compete to be in the population minority. The game reflects some essential features of those economic situations in...

Probabilistic learning and emergent coordination in a non-cooperative game with heterogeneous agents: An exploration of minority game dynamics.

Competition and coordination in experimental minority games

In this paper we present results of simulations in which we use a general probabilistic learning model to describe the behavior of heterogeneous agents in a non-cooperative game where it is rewarding...