Revisiting r>g—The asymptotic dynamics of wealth inequality

Yonatan Berman and Yoash Shapira

Physica A: Statistical Mechanics and its Applications, 2017, vol. 467, issue C, 562-572

Abstract: Studying the underlying mechanisms of wealth inequality dynamics is essential for its understanding and for policy aiming to regulate its level. We apply a heterogeneous non-interacting agent-based modeling approach, solved using iterated maps to model the dynamics of wealth inequality based on 3 parameters—the economic output growth rate g, the capital value change rate a and the personal savings rate s and show that for ag, the wealth distribution constantly becomes more and more inegalitarian. We also show that when aKeywords: Econophysics; Wealth inequality; Income inequality; Economic growth (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:467:y:2017:i:c:p:562-572

DOI: 10.1016/j.physa.2016.10.035

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