The Forbes 400, the Pareto power-law and efficient markets

O. S. Klass, O. Biham (), Moshe Levy (), O. Malcai and S. Solomon

The European Physical Journal B: Condensed Matter and Complex Systems, 2007, vol. 55, issue 2, 143-147

Abstract: Statistical regularities at the top end of the wealth distribution in the United States are examined using the Forbes 400 lists of richest Americans, published between 1988 and 2003. It is found that the wealths are distributed according to a power-law (Pareto) distribution. This result is explained using a simple stochastic model of multiple investors that incorporates the efficient market hypothesis as well as the multiplicative nature of financial market fluctuations. Copyright EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2007

Keywords: 89.65.Gh Economics; econophysics, financial markets, business and management, 89.65.-s Social and economic systems, 89.75.Da Systems obeying scaling laws, (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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DOI: 10.1140/epjb/e2006-00396-1

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