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A simple test for power-law behavior

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  • Carlos M. Urzúa

    (Tecnológico de Monterrey)

Abstract

In this article, I propose a new test for power-law behavior. The statistical test, pwlaw, is locally optimal if the possible alternative distributions are contained in the Pareto type (IV) family. After deriving the test, I examine four classical datasets: the frequency of unique words in an English text (Moby Dick); the human populations of U.S. cities; the frequency of U.S. family names; and the peak gamma-ray intensity of solar flares. I show that in the first case there is no indication of any power-law behavior and that in the second and fourth cases there is evidence in that regard.

Suggested Citation

  • Carlos M. Urzúa, 2020. "A simple test for power-law behavior," Stata Journal, StataCorp LP, vol. 20(3), pages 604-612, September.
    • Handle: RePEc:tsj:stataj:v:20:y:2020:i:3:p:604-612
    DOI: 10.1177/1536867X20953571
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    Cited by:

    1. Pater, Ciprian Florin & Mazrekaj, Deni, 2020. "Power Laws, Prices and National Accounts: Are There Any Irregularities?," SocArXiv gwha2, Center for Open Science.

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