The duration of recessions follows an exponential not a power law
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.
|Date of creation:||Nov 2003|
|Date of revision:||Mar 2011|
|Publication status:||Published in Physica A: Statistical Mechanics and its Applications, 345, 3-4, pp. 608-610, 2005|
|Contact details of provider:|| Web page: http://arxiv.org/|
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- 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.