document: The variance of firm growth rates : the ` scaling ' puzzle Recent evidence suggests that a power-law relationship exists between a firm 's size and the variance of its growth rate . The flatness of the relation is regarded as puzzling , in that it suggests that large firms are not much more stable than small firms . It has been suggested that the powerlaw nature of the relationship reflects the presence of some form of correlation of growth rates across the firm 's constituent businesses . Here , it is shown that a model of independent businesses which allows for the fact that these businesses vary in size , as modelled by a simple ` partitions of integers ' model , provides a good representation of what is observed empirically
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