A unified econophysics explanation for t
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Xavier Gabaix; Parameswaran Gopikrishnan; Vasiliki Plerou; Eugene Stanley
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Article
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2007
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Elsevier Science
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English
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We survey a theory (first sketched in Nature in 2003, then fleshed out in the Quarterly Journal of Economics in 2006) of the economic underpinnings of the fat-tailed distributions of a number of financial variables, such as returns and trading volume. Our theory posits that they have a common origin