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={J. Laherr{\`e}re and D. Sornette},
  journal={The European Physical Journal B - Condensed Matter and Complex Systems},
  year={1998},
  volume={2},
  pages={525-539}
}
  • J. Laherrère, D. Sornette
  • Published 1998
  • Physics, Mathematics
  • The European Physical Journal B - Condensed Matter and Complex Systems
  • 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… CONTINUE READING
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