Luís A. Nunes Amaral

Professor of Engineering Sciences and Applied Mathematics
Professor of Medicine (by courtesy)
Professor of Molecular Biosciences (by courtesy)
Professor of Physics & Astronomy (by courtesy)

Chemical & Biological Engineering
2145 Sheridan Road (Room E136)
Evanston, IL 60208, US
Phone: (847) 491-7850

Scaling the volatility of GDP growth rates

Canning D, Amaral LAN, Lee Y, Meyer M, Stanley HE
Economics Letters 60, 335-341 (1998)
Times cited: 81

Abstract

The distribution of shocks to GDP growth rates is found to be exponential rather than normal. Their standard deviation scales with GDP(beta) where beta = -0.15 +/- 0.03. These macroeconomic results place restrictions on the microeconomic structure of interactions between agents.