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The upper tail of a claim size distribution of a property line of business is frequently modelled by Pareto distribution. However, the upper tail does not need to be Pareto distributed, extraordinary shapes are possible. Here, the…

Methodology · Statistics 2020-02-19 Mathias Raschke

We introduce a new statistical tool (the TP-statistic and TE-statistic) designed specifically to compare the behavior of the sample tail of distributions with power-law and exponential tails as a function of the lower threshold u. One…

Computational Physics · Physics 2009-11-10 V. F. Pisarenko , D. Sornette

Power laws pervade statistical physics and complex systems, but, traditionally, researchers in these fields have paid little attention to properly fit these distributions. Who has not seen (or even shown) a log-log plot of a completely…

Applications · Statistics 2012-09-07 Alvaro Corral , Anna Deluca , Ramon Ferrer-i-Cancho

Natural language data follows a power-law distribution, with most knowledge and skills appearing at very low frequency. While a common intuition suggests that reweighting or curating data towards a uniform distribution may help models…

Artificial Intelligence · Computer Science 2026-04-28 Zixuan Wang , Xingyu Dang , Jason D. Lee , Kaifeng Lyu

Explaining empirically observed wealth and income distributions, featuring power-law tails alongside gamma or log-normal bulk shapes, challenges models that focus on either pairwise competition or individual investment mechanisms. This…

Physics and Society · Physics 2025-05-19 Yuri Ono , Atsushi Ishida

Real-world networks are generally claimed to be scale-free, meaning that the degree distributions follow the classical power-law, at least asymptotically. Yet, closer observation shows that the classical power-law distribution is often…

Statistics Theory · Mathematics 2022-07-18 Swarup Chattopadhyay , Tanujit Chakraborty , Kuntal Ghosh , Asit K. das

An expanded family of mixtures of multivariate power exponential distributions is introduced. While fitting heavy-tails and skewness has received much attention in the model-based clustering literature recently, we investigate the use of a…

Methodology · Statistics 2015-06-15 Utkarsh J. Dang , Ryan P. Browne , Paul D. McNicholas

Power-law probability distributions are widely used to model extreme statistical events in complex systems, with applications to a vast array of natural phenomena ranging from earthquakes to stock market crashes to pandemics. We show that…

Quantum Physics · Physics 2026-04-08 Wai-Keong Mok

It has been shown that some macroeconomic time series, especially those where outliers could be present, can be well modelled using heavy tailed distributions for the noise components. Methods for deciding when and where heavy-tailed models…

Statistics Theory · Mathematics 2007-06-13 J. A. D. Aston

Many social, technological, biological, and economical systems are best described by weighted networks, whose properties and dynamics depend not only on their structures but also on the connection weights among their nodes. However, most…

Disordered Systems and Neural Networks · Physics 2015-06-24 Chunguang Li , Guanrong Chen

The availability of large scale streaming network data has reinforced the ubiquity of power-law distributions in observations and enabled precision measurements of the distribution parameters. The increased accuracy of these measurements…

Physics and Society · Physics 2021-08-23 Pat Devlin , Jeremy Kepner , Ashley Luo , Erin Meger

For taxonomic levels higher than species, the abundance distributions of number of subtaxa per taxon tend to approximate power laws, but often show strong deviationns from such a law. Previously, these deviations were attributed to…

Biological Physics · Physics 2009-11-06 Johan Chu , Chris Adami

The power law distribution is usually used to fit data in the upper tail of the distribution. However, commonly it is not valid to model data in all the range. In this paper, we present a new family of distributions, the so-called…

Adaptation and Self-Organizing Systems · Physics 2016-09-21 Faustino Prieto , José María Sarabia

The distribution of data in the world (eg, internet, etc.) significantly differs from the well-curated datasets and is often over-populated with samples from common categories. The algorithms designed for well-curated datasets perform…

Machine Learning · Computer Science 2025-07-30 Harsh Rangwani

In this paper, we propose an optimization-based mechanism to explain power law distributions, where the function that the optimization process is seeking to optimize is derived mathematically, then the behavior and interpretation of this…

Physics and Society · Physics 2018-12-27 A. M. Khalili

Although power laws of the Zipf type have been used by many workers to fit rank distributions in different fields like in economy, geophysics, genetics, soft-matter, networks etc., these fits usually fail at the tails. Some distributions…

Data Analysis, Statistics and Probability · Physics 2015-10-12 Gerardo G. Naumis , Germinal Cocho

It is argued that there is a need for fat-tailed distributions that become thin in the extreme tail. A 3-parameter distribution is introduced that visually resembles the t-distribution and interpolates between the normal distribution and…

Statistics Theory · Mathematics 2022-02-08 Rose D Baker

In this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimising the mean squared error is used to choose the…

Physics and Society · Physics 2009-01-31 F. Clementi , T. Di Matteo , M. Gallegati

Empirical evidence suggests that heavy-tailed degree distributions occurring in many real networks are well-approximated by power laws with exponents $\eta$ that may take values either less than and greater than two. Models based on various…

Machine Learning · Statistics 2018-07-10 Benjamin Bloem-Reddy , Adam Foster , Emile Mathieu , Yee Whye Teh

Modelling non-homogeneous and multi-component data is a problem that challenges scientific researchers in several fields. In general, it is not possible to find a simple and closed form probabilistic model to describe such data. That is why…

Methodology · Statistics 2017-12-27 Nehla Debbabi , Marie Kratz , Mamadou Mboup