Study of A model for the distribution of wealth

DOI10.1007/978-3-319-12328-8_1MaRDI QIDQ2949225zbMATH OpenOpenAlexFDO

Authors Yves Pomeau, Ricardo López-Ruiz

Publication date 8 October 2015

Published in Springer Proceedings in Mathematics & Statistics (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1407.7447

Mathematics Subject Classification ID

Dynamical systems in optimization and economics (37N40) Welfare economics (91B15)

Abstract: An equation for the evolution of the distribution of wealth in a population of economic agents making binary transactions with a constant total amount of "money" has recently been proposed by one of us (RLR). This equation takes the form of an iterated nonlinear map of the distribution of wealth. The equilibrium distribution is known and takes a rather simple form. If this distribution is such that, at some time, the higher momenta of the distribution exist, one can find exactly their law of evolution. A seemingly simple extension of the laws of exchange yields also explicit iteration formulae for the higher momenta, but with a major difference with the original iteration because high order momenta grow indefinitely. This provides a quantitative model where the spreading of wealth, namely the difference between the rich and the poor, tends to increase with time.

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Cites work

• Convergence to an exponential wealth distribution in a random market model
• Exponential wealth distribution : a new approach from functional iteration theory
• Exponential wealth distribution in a random market. A rigorous explanation

Cited in

(14)

• Analysis of a model that leads to the Pareto law of wealth distribution
• Distribution of wealth in a network model of the economy
• Evolution of the distribution of wealth in an economic environment driven by local Nash equilibria
• Wealth concentration in systems with unbiased binary exchanges
• The affine wealth model: an agent-based model of asset exchange that allows for negative-wealth agents and its empirical validation
• Deriving the size distribution of personal wealth from “the rich get richer, the poor get poorer”
• Wealth distribution evolution in an agent-based computational economy
• THE WEALTH DISTRIBUTION MODEL WITH THE KICKBACK RATE
• An out-of-equilibrium model of the distributions of wealth
• Stochastic Maps, Wealth Distribution in Random Asset Exchange Models and the Marginal Utility of Relative Wealth
• Thermal and superthermal income classes in a wealth alike distribution generated by Conway's game of life cellular automaton
• Derivation of wealth distributions from biased exchange of money
• A versatile stochastic dissemination model
• The immediate exchange model: an analytical investigation

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