<p>In economics, what variables do we usually assume to follow an exponential distribution? I would like as many examples as possible, and it would be great if you have a rationale(economic reason or economic theory) for making the exponential distribution assumption in your example. Thanks!</p>

CC BY-SA 4.0
2021-07-21T08:02:31.770Z
I think this is a bit broad exponential distribution is extremely popular in economics. Too broad questions are off topic according to our help center consider it narrowing down to either some field or topic, otherwise this could be closed down
1muflon1
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2021-07-21T08:36:15.843Z
@T34driver: I assume you referring to **stochastic** variables, i.e. shocks?
BrsG
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2021-07-22T02:42:48.987Z
@BrsG Thanks you! Yes, I meant random/stochastic variables.
ExcitedSnail
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2021-07-22T02:44:45.227Z
@1muflon1 Thanks! I'm writing course materials for a course on statistics for economists, and would like to give some economic motivations for important distributions.
ExcitedSnail
CC BY-SA 4.0
2021-07-22T08:30:46.690Z
@T34driver then maybe consider changing it to important/most important applications
1muflon1
<statistics><probability>
In economics, what variables do we usually assume to follow an exponential distribution?
ExcitedSnail
# In economics, what variables do we usually assume to follow an exponential distribution?

(Asked by: username_0 on 2021-07-20)

In economics, what variables do we usually assume to follow an exponential distribution? I would like as many examples as possible, and it would be great if you have a rationale(economic reason or economic theory) for making the exponential distribution assumption in your example. Thanks!

**Tags:** statistics, probability

> **Comments:**
> **username_1**: I think this is a bit broad exponential distribution is extremely popular in economics. Too broad questions are off topic according to our help center consider it narrowing down to either some field or topic, otherwise this could be closed down  
> **username_2**: @T34driver: I assume you referring to **stochastic** variables, i.e. shocks?  
> **username_0**: @username_2 Thanks you! Yes, I meant random/stochastic variables.  
> **username_0**: @username_1 Thanks! I'm writing course materials for a course on statistics for economists, and would like to give some economic motivations for important distributions.  
> **username_1**: @T34driver then maybe consider changing it to important/most important applications  

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## 0 answers

