  We propose coalescent mechanism of economic grow because of redistribution of
external resources. It leads to Zipf distribution of firms over their sizes,
turning to stretched exponent because of size-dependent effects, and predicts
exponential distribution of income between individuals. We also present new
approach to describe fluctuations on the market, based on separation of hot
(short-time) and cold (long-time) degrees of freedoms, which predicts tent-like
distribution of fluctuations with stable tail exponent mu=3 (mu=2 for news).
The theory predicts observable asymmetry of the distribution, and its size
dependence. In the case of financial markets the theory explains first time
market mill patterns, conditional distribution, D-smile, z-shaped response,
conditional double dynamics, the skewness and so on. We derive the set of
Langeven equations, which predicts logarithmic dependence of price shift on
trading volume and volatility patterns after jumps. We calculate parameters of
price distributions, correlation functions and Hurst exponents at different
time scales. At large times the price experiences fractional Brownian motion
with chaotically switching of long-time persistent and anti-persistent
behavior, and we calculate corresponding probabilities, response functions, and
risks.
