 Law of Motion for Economic Inequality: An Analogy to Newtonian MechanicsTaiji Harashima MPRA Paper from University Library of Munich, Germany Abstract: This paper demonstrates that the dynamics of economic inequality follow a law of motion closely analogous to Newtonian mechanics. Within this framework, specific types of inherent household heterogeneity generate continuous "forces" that persistently exacerbate inequality, thereby necessitating government intervention as an essential counterforce. This study formally models how the force-based aggravation of economic inequality aligns with classical Newtonian laws—specifically the principles of inertia, acceleration, and action and reaction. Furthermore, the underlying real interest rate is identified as the primary point of application for these forces, where the interest-bearing period determines the transient deformation, or softness, of the economic system. Finally, the force driving inequality is conceptualized as a dynamic interaction among heterogeneous households. These findings provide a novel mathematical foundation for understanding and controlling the persistent widening of economic inequality. Keywords: Economic inequality; Household heterogeneity; Law of motion; Newtonian mechanics; Sustainable heterogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:129320 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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