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The duration of recessions follows an exponential not a power law

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  • Ian Wright

Abstract

Ormerod and Mounfield analysed GDP data of 17 leading capitalist economies from 1870 to 1994 and concluded 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.

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  • Ian Wright, 2003. "The duration of recessions follows an exponential not a power law," Papers cond-mat/0311585, arXiv.org, revised Mar 2011.
    • Handle: RePEc:arx:papers:cond-mat/0311585
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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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