A Simple Probabilistic Approach of the Yard-Sale Model

Christophe Chorro
Additional contact information
Christophe Chorro: Centre d'Economie de la Sorbonne

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We propose in the present paper a probabilistic approach of the so-called Hayes (2002) Yard-Sale model using classical diffusion approximations of Markov chains. We partly recover, at the very least for small and high frequency transactions, recent results of Boghosian (2014) and Boghosian et al. (2015) concerning both wealth condensation in the absence of redistribution mechanisms and steady state distributions when a uniform capital taxation is imposed

Keywords: Wealth distribution; Yard-Sale model; Diffusion approximations; Impact of taxation (search for similar items in EconPapers)
JEL-codes: C32 C63 D31 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2015-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Statistics and Probability Letters, 2016, 112, pp.35-40

Downloads: (external link)
https://shs.hal.science/halshs-01222500 (application/pdf)
https://doi.org/10.1016/j.spl.2016.01.012

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:15062

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().