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Fat-Tailed Distributions and Levy Processes

2008/08/18 by Louis Mello, Mello, Louis
Economics, Econometrics and Finance · #Complex Systems and Time Series Analysis

paper · pdf · doi:10.48550/arxiv.0808.2393

Abstract

The notion that natural disasters can be controlled is, of course, farcical; history is permeated with examples of countless failed attempts at this pointless task; it is synonymous with trying to build a perpetual motion machine. Nonetheless, there are ways to reduce their impact on human communities, particularly by looking away from the normal hypothesis.

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