Effects of taxation on money distribution

M. Diniz and F.M. Mendes

International Review of Financial Analysis, 2012, vol. 23, issue C, 81-85

Abstract: The study of how money is distributed among a great number of agents has called the attention of econophysics researchers since the late 1990s. Following the setup proposed by Dragulescu and Yakovenko (2000) to simulate a dynamic economy, we investigate how the money distribution is affected by a government that collects taxes and gives this amount back to the agents periodically. We propose different taxation schemes and compare them using the Gini coefficient associated to the stationary money distribution.

Keywords: Money distribution; Statistical physics (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521911000755
Full text for ScienceDirect subscribers only

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:eee:finana:v:23:y:2012:i:c:p:81-85

DOI: 10.1016/j.irfa.2011.06.014

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().