@article{León_2015, title={Scale-free tails in colombian financial indexes: a primer}, url={https://revistas.uexternado.edu.co/index.php/odeon/article/view/4415}, DOI={10.18601/17941113.n9.06}, abstractNote={<p>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 the heavy tails of a local sovereign securities index (IDXTES) are a plausible case for such distribution. Results also (i) support critiques regarding the flaws of ordinary least squares estimation methods for scale-free distributions; (ii) question the validity of Zipf’s law; (iii) suggest that IGBC and TRM display the scale-free nature documented as a stylized fact of financial returns, and that they may be following a gradually truncated Lévy flight; and (iv) suggest that local financial markets are self-organizing systems.</p>}, number={9}, journal={ODEON}, author={León, Carlos}, year={2015}, month={feb.}, pages={233–255} }