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The duration of recessions follows an exponential not a power law

Ian Wright

cond-matarXiv:cond-mat/0311585

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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