Kinetic models of conservative economies with wealth redistribution (Q2379847): Difference between revisions

Kinetic models for wealth distribution in a simple market economy are discussed. The models are based on the equation with taxation/redistribution \[ \frac{\partial f(v, t)}{\partial t}=Q_\epsilon(f, f)(v,t)+R^\epsilon_\chi(f)(v, t), \] where \(f=f(v, t)\) is the distribution of wealth \(v\in\mathbb{R}_+\) at time \(t\geq 0\), the bilinear operator \(Q_\epsilon\) accounts for taxation in trades, the differential operator \(R^\epsilon_\chi\) accounts for redistribution and (possible) additional taxation. It is shown that in general the redistribution is able to modify the Pareto index, and that this modification can be quantified in terms of the redistribution operator.