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Wealth distribution in modern societies: Collected data and a master equation approach

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  • Gere, István
  • Kelemen, Szabolcs
  • Tóth, Géza
  • Biró, Tamás S.
  • Néda, Zoltán

Abstract

A mean-field like stochastic evolution equation with growth and reset terms (LGGR model) is used to model wealth distribution in modern societies. The stationary solution of the model leads to an analytical form for the density function that is successful in describing the observed data for all wealth categories. In the limit of high wealth values the proposed density function has the accepted Tsallis–Pareto shape. Our results are in agreement with the predictions of an earlier approach based on a mean-field like wealth exchange process.

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  • Gere, István & Kelemen, Szabolcs & Tóth, Géza & Biró, Tamás S. & Néda, Zoltán, 2021. "Wealth distribution in modern societies: Collected data and a master equation approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
    • Handle: RePEc:eee:phsmap:v:581:y:2021:i:c:s0378437121004672
    DOI: 10.1016/j.physa.2021.126194
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