Inequalities of wealth distribution in a conservative economy

S. Pianegonda and J.R. Iglesias

Physica A: Statistical Mechanics and its Applications, 2004, vol. 342, issue 1, 193-199

Abstract: We analyze a conservative market model for the competition among economic agents in a society with conserved total wealth. A minimum dynamics ensures that the poorest agent has a chance to improve its economic welfare. After a transient, the system self-organizes into a critical state where the wealth distribution have a minimum threshold, with almost no agent below this poverty line. Also, very few extremely rich agents are stable in time. Above the poverty line the distribution follows an exponential behavior. The local solution exhibits a low Gini index, while the mean field solution of the model generates a wealth distribution similar to welfare states like Sweden.

Keywords: Econophysics; Inequalities; Wealth distribution; Minimum dynamics (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:342:y:2004:i:1:p:193-199

DOI: 10.1016/j.physa.2004.04.078

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