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The duration of recessions follows an exponential not a power law

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  • Wright, Ian

Abstract

Ormerod and Mounfield (Physica A 293 (2001) 573) analyse GDP data of 17 leading capitalist economies from 1870 to 1994 and conclude that the frequency of the duration of recessions is consistent with a power law. But in fact the data is consistent with an exponential (Boltzmann–Gibbs) law.

Suggested Citation

  • Wright, Ian, 2005. "The duration of recessions follows an exponential not a power law," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 345(3), pages 608-610.
    • Handle: RePEc:eee:phsmap:v:345:y:2005:i:3:p:608-610
    DOI: 10.1016/j.physa.2004.07.035
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    References listed on IDEAS

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    1. Ormerod, Paul & Mounfield, Craig, 2001. "Power law distribution of the duration and magnitude of recessions in capitalist economies: breakdown of scaling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 293(3), pages 573-582.
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