Kinetic models for optimal control of wealth inequalities

Bertram D\"uring, Lorenzo Pareschi and Giuseppe Toscani
Authors registered in the RePEc Author Service: Bertram Düring

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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 and taxation-redistribution policies and the present approach are also discussed.

Date: 2018-03, Revised 2018-07
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Citations: View citations in EconPapers (11)

Published in Eur. Phys. J. B 91(10) (2018), 265

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Journal Article: Kinetic models for optimal control of wealth inequalities (2018)
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