Pareto's law: a model of human sharing and creativity

Nicola Scafetta, Sergio Picozzi and Bruce J. West

Papers from arXiv.org

Abstract: A computational model for the distribution of wealth among the members of an ideal society is presented. It is determined that a realistic distribution of wealth depends upon two mechanisms: an asymmetric flux of wealth in trading transactions that advantages the poorer of the two traders and a non-stationary creation and destruction of individual wealth. The former mechanism redistributes wealth by reducing the gap between the rich and poor, leading to the emergence of a middle class. The latter mechanism, together with the former one, generates a distribution of wealth having a power-law tail that is compatible with Pareto's law.

Date: 2002-09
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://arxiv.org/pdf/cond-mat/0209373 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:cond-mat/0209373

Access Statistics for this paper

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