Kinetic models for optimal control of wealth inequalities

Bertram Düring, Lorenzo Pareschi and Giuseppe Toscani
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Lorenzo Pareschi: Dipartimento di Matematica e Informatica
Giuseppe Toscani: Dipartimento di Matematica and IMATI, CNR

The European Physical Journal B: Condensed Matter and Complex Systems, 2018, vol. 91, issue 10, 1-12

Abstract: Abstract We introduce and discuss optimal control strategies for kinetic models for wealth distribution in a simple market economy, acting to minimize the variance of the wealth density among the population. Our analysis is based on a finite time horizon approximation, or model predictive control, of the corresponding control problem for the microscopic agents’ dynamic and results in an alternative theoretical approach to the taxation and redistribution policy at a global level. It is shown that in general the control is able to modify the Pareto index of the stationary solution of the corresponding Boltzmann kinetic equation, and that this modification can be exactly quantified. Connections between previous Fokker–Planck based models for taxation-redistribution policies and the present approach are also discussed.

Keywords: Statistical; and; Nonlinear; Physics (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (11)

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DOI: 10.1140/epjb/e2018-90138-1

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