Inequality in a model of capitalist economy

Jhordan Silveira Borba, Sebastian Gon\c{c}alves and Celia Anteneodo

Papers from arXiv.org

Abstract: We analyze inequality aspects of the agent-based model of capitalist economy named it Social Architecture of Capitalism that has been introduced by Ian Wright. The model contemplates two main types of agents, workers and capitalists, which can also be unemployed. Starting from a state where all agents are unemployed and possess the same initial wealth, the system, governed by a few simple rules, quickly self-organizes into two classes. After a transient, the model reproduces the statistics of many relevant macroeconomic quantities of real economies worldwide, notably the two regimes of the distributions of wealth and income. We perform extensive simulations testing the role of the model parameters (number of agents, total wealth, and salary range) on the resulting distribution of wealth and income, the social distribution of agents, and other stylized facts of the dynamics. Our main finding is that, according to the model, in an economy where total wealth is conserved and with a fixed average wage, the increase in wealth per capita comes with more inequality.

Date: 2024-10, Revised 2025-03
New Economics Papers: this item is included in nep-hme
References: Add references at CitEc
Citations:

Published in Physica A: Statistical Mechanics and its Applications 664 (2025) 130457

Downloads: (external link)
http://arxiv.org/pdf/2410.22369 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2410.22369

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().