Scale-free tails in colombian financial indexes : a primer

Borradores de Economia
Número: 
812
Publicado: 
Clasificación JEL: 
C46, C58, G32
Palabras clave: 
Scale-free, Power-law, Zipf’s law, Financial returns

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A maximum likelihood method for estimating the power-law exponent verifies that the positive and negative tails of the Colombian stock market index (IGBC) and the Colombian peso exchange rate (TRM) approximate a scale-free distribution, whereas none of th