# Stretched exponential distributions in nature and economy: “fat tails” with characteristic scales

@article{Laherrre1998StretchedED, title={Stretched exponential distributions in nature and economy: “fat tails” with characteristic scales}, author={Jean H. Laherr{\`e}re and Didier Sornette}, journal={The European Physical Journal B - Condensed Matter and Complex Systems}, year={1998}, volume={2}, pages={525-539} }

Abstract:To account quantitatively for many reported “natural” fat tail distributions in Nature and Economy, we propose the stretched exponential family as a complement to the often used power law distributions. It has many advantages, among which to be economical with only two adjustable parameters with clear physical interpretation. Furthermore, it derives from a simple and generic mechanism in terms of multiplicative processes. We show that stretched exponentials describe very well the…

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