...deviation economic variable from its expected value, i.e. "disturbances," follows normal distribution. This implies that moment generating integrals are bounded. The main justification for this assumption is the Central Limit Theorem, which argues the distribution of a sum is asymptotically normal since economic data is determined as the sum of activities of independent agents. One objection to this orthodox view comes from proponents of "chaos theory," who believe economic variables do not make smooth continuous transitions, but are prone to discontinuous jumps in response to exogenous change. The most radical critique comes...

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