We consider the shot noise process, whose associated impulse response is a decaying power-law kernel of the form . We show that this power-law Poisson model gives rise to a process that, at each time instant, is an -stable random variable, if . We show that although the process is not -stable, pairs of its samples become jointly -stable as the distance between them tends to infinity. It is know...

It is widely believed that the Internet’s AS-graph degree distribution obeys a power-law form. Most of the evidence showing the power-law distribution is based on BGP data. However, it was recently argued that since BGP collects data in a tree-like fashion, it only produces a sample of the degree distribution, and this sample may be biased. This argument was backed by simulation data and mathem...

Networks grow and evolve by local events, such as the addition of new nodes and links, or rewiring of links from one node to another. We show that depending on the frequency of these processes two topologically different networks can emerge, the connectivity distribution following either a generalized power law or an exponential. We propose a continuum theory that predicts these two regimes as ...

We analyze the distribution of income and income tax of individuals in Japan for the fiscal year 1998. From the rank-size plots we find that the accumulated probability distribution of both data obey a power law with a Pareto exponent very close to −2. We also present an analysis of the distribution of the debts owed by bankrupt companies from 1997 to March, 2000, which is consistent with a pow...

We examine the role of generalized constant gain stochastic gradient (SGCG) learning in generating large deviations of an endogenous variable from its rational expectations value. We show analytically that these large deviations can occur with a frequency associated with a fat tailed distribution even though the model is driven by thin tailed exogenous stochastic processes. We characterize thes...