Quantifying economic fluctuations

H. Eugene Stanley*, Luis A. Nunes Amaral, Xavier Gabaix, Parameswaran Gopikrishnan, Vasiliki Plerou

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review

11 Scopus citations


The role of scale invariance and universality, the two pillars of the field of phase transitions and critical phenomena, in guiding research on interpreting empirical data on economic fluctuations, was discussed. The relation between trading activity, which was measured by the number of transactions N, and the price change G(t) for a given stock, over a time interval [t,t + δt], was quantified. The time-dependent standard deviation of price changes was related to two microscopic quantities of the number of transactions N(t) in δt and variance W2(t) of the price changes for all transactions in δt.

Original languageEnglish (US)
Pages (from-to)126-137
Number of pages12
JournalPhysica A: Statistical Mechanics and its Applications
Issue number1-4
StatePublished - Dec 15 2001
EventInternational Workshop on Frontiers in the Physics of Complex Systems - Ramat-Gan, Israel
Duration: Mar 25 2001Mar 28 2001


  • Economics
  • Econophysics
  • Firm growth
  • Gross domestic product (GDP)
  • Lévy distribution
  • Random matrix theory
  • Volatility

ASJC Scopus subject areas

  • Statistics and Probability
  • Condensed Matter Physics


Dive into the research topics of 'Quantifying economic fluctuations'. Together they form a unique fingerprint.

Cite this