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Rare events
Rare events are events that occur with low frequency. The term is conventionally applied for those events that have potentially widespread impact and which might destabilize society.〔King, G., & Zeng, L. (2001). Logistic regression in rare events data. ''Political Analysis'', ''9''(2), 137–63. http://pan.oxfordjournals.org/content/9/2/137.short〕 Rare events encompass natural phenomena (major earthquakes, tsunamis, hurricanes, floods, asteroid impacts, solar flares, etc.), anthropogenic hazards (warfare and related forms of violent conflict, acts of terrorism, industrial accidents, financial and commodity market crashes, etc.), as well as phenomena for which natural and anthropogenic factors interact in complex ways (epidemic disease spread, global warming-related changes in climate and weather, etc.). == Overview == Rare events are discrete occurrences that are statistically “improbable” in that they are very infrequently observed. Despite being statistically improbable, such events are plausible insofar as historical instances of the event (or a similar event) have been documented.〔Morio, J., Balesdent, M. (2015). ''Estimation of Rare Event Probabilities in Complex Aerospace and Other Systems''. Elsevier Science. http://store.elsevier.com/product.jsp?isbn=9780081000915&pagename=search〕 Scholarly and popular analyses of rare events often focus on those events that could be reasonably expected to have a substantial negative impact on a society—either economically〔Sanders, D. (2002). The management of losses arising from extreme events. Paper presented at General Insurance Convention. http://www.actuaries.org.uk/research-and-resources/documents/management-losses-arising-extreme-events〕 or in terms of human casualties〔Clauset, A., & Woodard, R. (2013). Estimating the historical and future probabilities of large terrorist events. ''Annals of Applied Statistics'',''7''(4),1838-1865. doi:10.1214/12-AOAS614. http://arxiv.org/abs/1209.0089〕 (typically, both). Examples of such events might include an 8.0+ Richter magnitude earthquake, a nuclear incident that kills thousands of people, or a 10%+ single-day change in the value of a stock market index.〔Ghil, M., P. Yiou, S. Hallegatte, B. D. Malamud, P. Naveau, A. Soloviev, P. Friederichs, et al. (2011). Extreme events: Dynamics, statistics and prediction. ''Nonlinear Processes in Geophysics'', ''18''(3), 295–350. doi:10.5194/npg-18-295-2011. http://www.nonlin-processes-geophys.net/18/295/2011/npg-18-295-2011.pdf〕〔Sharma, A. S., Bunde, A., Dimri,V.P., & Baker,D.N. (2013). ''Extreme events and natural hazards: The complexity perspective''. Wiley. http://books.google.com/books?id=t3F9K5clZwsC〕〔Watkins, N. W. (2013). Bunched black (and grouped grey) swans: Dissipative and non‐dissipative models of correlated extreme fluctuations in complex geosystems. ''Geophysical Research Letters'', ''40''(2), 402–10〕
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