Advanced Search
MyIDEAS: Login

A Stochastic Model of Wealth Accumulation with Class Division

Contents:

Author Info

  • Alberto RUSSO

    ()
    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

Abstract

In this paper we propose a stochastic model in which wealth accumulation depends on the role that agents play in the society: capitalists or workers. A random mechanism of class selection shapes the social structure of the economy based on wealth distribution dynamics. As a result, the society may evolve towards an unequal outcome with few rich and many poor individuals, even starting from perfect equality. We study the dynamic properties of the model by means of computer simulations. A maximum likelihood estimation procedure is applied to analyse the Pareto or power law tail of wealth distribution. We also provide a scenario analysis to explore the system's behaviour under alternative parameter settings.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://docs.dises.univpm.it/web/quaderni/pdf/373.pdf
File Function: First version, 2012
Download Restriction: no

Bibliographic Info

Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 373.

as in new window
Length: 29
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:anc:wpaper:373

Contact details of provider:
Postal: Piazzale Martelli, 8, 60121 Ancona
Phone: +39 071 220 7100
Fax: +39 071 220 7102
Web page: http://www.dises.univpm.it/
More information through EDIRC

Related research

Keywords: power law; social classes; wealth distribution;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Roberto ESPOSTI & Giulia LISTORTI, 2011. "Agricultural Price Transmission Across Space and Commodities During Price Bubbles," Working Papers 367, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Andrea CIRILLI & Paolo VENERI, 2008. "Spatial structure and mobility patterns: towards a taxonomy of the Italian urban systems," Working Papers 313, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Riccetti, Luca & Russo, Alberto & Gallegati, Mauro, 2013. "Leveraged network-based financial accelerator," Journal of Economic Dynamics and Control, Elsevier, vol. 37(8), pages 1626-1640.
  4. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
  5. Fabio FIORILLO & Agnese SACCHI, 2010. "I Want to Free-ride. An Opportunistic View on Decentralization Versus Centralization Problem," Working Papers 346, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  6. David Bartolini & Alberto Zazzaro, 2009. "Are antitrust fines friendly to competition? An endogenous coalition formation approach to collusive cartels," Mo.Fi.R. Working Papers 19, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  7. Andrea CIRILLI & Paolo VENERI, 2010. "Spatial Structure and CO2 Emissions Due to Commuting: an Analysis on Italian Urban Areas," Working Papers 353, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  8. Alessia Lo Turco & Daniela Maggioni, 2012. "Offshoring to High and Low Income Countries and the Labor Demand. Evidence from Italian Firms," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 636-653, 08.
  9. Luca RICCETTI, 2011. "A Copula-GARCH Model for Macro Asset Allocation of a Portfolio with Commodities: an Out-of-Sample Analysis," Working Papers 355, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  10. Aleksandra Parteka & Massimo Tamberi, 2013. "What Determines Export Diversification in the Development Process? Empirical Assessment," The World Economy, Wiley Blackwell, vol. 36(6), pages 807-826, 06.
  11. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
  12. Giulia BETTIN & Alessia LO TURCO & Daniela MAGGIONI, 2011. "A firm level perspective on migration," Working Papers 360, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  13. Luca RICCETTI, 2010. "Minimum Tracking Error Volatility," Working Papers 340, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  14. Fabio FIORILLO, 2011. "A model on interests representation and;accountability in small local governments," Working Papers 356, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  15. Ugo FRATESI, 2010. "The National and International Effects;of Regional Policy Choices: Agglomeration Economies, Peripherality and Territorial Characteristics," Working Papers 344, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  16. Stefania Vitali & Gabriele Tedeschi & Mauro Gallegati, 2013. "The impact of classes of innovators on technology, financial fragility, and economic growth," Industrial and Corporate Change, Oxford University Press, vol. 22(4), pages 1069-1091, August.
  17. Gabriele MORETTINI & Andrea PRESBITERO & Massimo TAMBERI, 2011. "Da paesi vicini, democratici e non troppo poveri: l'immigrazione straniera nelle province italiane," Working Papers 362, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  18. Fabio FIORILLO, 2008. "Love for Variety and Non Market Allocation Mechanisms in Public Provision of Goods," Working Papers 317, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  19. Paolo VENERI & David BURGALASSI, 2011. "Spatial Structure and Productivity in Italian NUTS-3 Regions," Working Papers 364, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  20. Domenico SCALERA & Alberto ZAZZARO, 2010. "L'economia del Mezzogiorno. Nuova politica regionale, crisi globale e federalismo fiscale," Working Papers 337, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  21. Massimo TAMBERI, 2010. "Be Careful! A Short Note on a Possible Bias in (Trade) Structural Change Analysys," Working Papers 341, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  22. Antonio G. Calafati & Paolo Veneri, 2013. "Re-defining the Boundaries of Major Italian Cities," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 789-802, May.
  23. Agnese SACCHI, 2008. "Il decentramento della funzione redistributiva: effetti sul benessere degli individui," Working Papers 323, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  24. Esposti, Roberto, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43955, European Association of Agricultural Economists.
  25. Valentina Cristiana MATERIA & Roberto ESPOSTI, 2010. "Modelling Agricultural Public R&D Cofinancing Within A Principal-Agent Framework. The case of an Italian region," Working Papers 347, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  26. Nicoletta MARINELLI & Giulio PALOMBA, 2008. "A Model for Pricing the Italian Contemporary Art Paintings at Auction," Working Papers 316, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  27. Barbara ERMINI, 2008. "Oltre Gibrat. Capitale umano dei fondatori, endogeneita' del finanziamento pubblico e crescita delle giovani imprese hi-tech italiane," Working Papers 322, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  28. Paolo VENERI, 2010. "The Identification of Sub-centres in Two Italian Metropolitan Areas: a Functional Approach," Working Papers 343, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  29. Pietro ALESSANDRINI & Michele FRATIANNI, 2008. "Resurrecting Keynes to Revamp the International Monetary System," Working Papers 310, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  30. Silvia CODERONI & Roberto ESPOSTI, 2011. "Is there a Long-Term Relationship between Agricultural GHG Emissions and Productivity Growth? The Case of Italian Agriculture," Working Papers 369, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  31. Fabio TRAMONTANA & Laura GARDINI & Puu TONU, 2008. "Cournot Duopoly with Capacity Limit Plants," Working Papers 314, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  32. David BARTOLINI, 2008. "A model of Cooperative Investments with Three Players," Working Papers 312, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  33. Fabiano COMPAGNUCCI & Augusto CUSINATO, 2011. "Industrial Districts and the City: Relationships in the Knowledge Age. Evidence from the Italian Case," Working Papers 365, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  34. Palomba, Giulio & Riccetti, Luca, 2012. "Portfolio frontiers with restrictions to tracking error volatility and value at risk," Journal of Banking & Finance, Elsevier, vol. 36(9), pages 2604-2615.
  35. Corrado DI GUILMI, 2008. "Financial Determinants of Firms Profitability: A Hazard Function Investigation," Working Papers 315, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  36. Francesco Chelli & Chiara Gigliarano & Elvio Mattioli, 2009. "The impact of inflation on heterogeneous groups of households: an application to italy," Economics Bulletin, AccessEcon, vol. 29(2), pages 1276-1295.
  37. Giulia BETTIN & Alessia LO TURCO, 2009. "A Cross Country View On South-North Migration And Trade," Working Papers 331, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  38. Giulia LISTORTI, 2008. "Price Transmission Mechanisms: a Policy Investigation of International Wheat Markets," Working Papers 318, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  39. Elena AMBROSETTI & Eralba CELA & Tineke FOKKEMA, 2011. "The Remittances Behaviour of the Second Generation in Europe: Altruism or Self-Interest?," Working Papers 368, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  40. Alessandro Gambini & Alberto Zazzaro, 2009. "Who Captures Who? Long-Lasting Bank Relationships and Growth of Firms," Mo.Fi.R. Working Papers 22, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  41. Marco LILLA, 2008. "Income Inequality and Education from ECHP data," Working Papers 311, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  42. Antonio G. CALAFATI, 2011. "The Long-run Growth Trajectories of Third Italy's Cities," Working Papers 366, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  43. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2010. "Backward linkages and the export;performance of business services.;Evidence from a sample of Italian firms," Working Papers 352, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  44. Claudia PIGINI, 2011. "The Determinants of University Students Success: a Bivariate Latent Variable Model," Working Papers 354, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  45. Francesco BALDUCCI, 2010. "The Web's Promotional Effect and Artists' Strategies," Working Papers 345, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  46. Alessia Lo Turco & Daniela Maggioni, 2013. "On the Role of Imports in Enhancing Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 36(1), pages 93-120, 01.
  47. Giovanni BUSETTA & Dario CORSO, 2008. "La legge di Okun: asimmetrie e differenziali territoriali in Italia," Working Papers 320, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  48. Antonio G. CALAFATI, 2011. "European Cities' Development Strategies and the EU's Territorial Agenda," Working Papers 372, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  49. Francesco CHELLI & Chiara GIGLIARANO & Elvio MATTIOLI, 2009. "The Impact of Inflation on Heterogeneous Groups of Households: an Application to Italy," Working Papers 329, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  50. Chiara GIGLIARANO & Karl MOSLER, 2009. "Measuring middle-class decline in one and many attributes," Working Papers 333, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  51. Chiara BROCCOLINI & Marco LILLA & Stefano STAFFOLANI, 2010. "A Search Model in a Segmented Labour Market: the Odd Role of Unions," Working Papers 349, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  52. Fabiano COMPAGNUCCI, 2009. "Dai Sistemi Locali del Lavoro alle Citta': verso un nuovo algoritmo di regionalizzazione," Working Papers 335, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  53. Stefano STAFFOLANI & Enzo VALENTINI, 2009. "Does Immigration Raise Blue and White Collar Wages of Natives?," Working Papers 330, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  54. Francesco VENTURINI, 2008. "Information Technology, Research & Development, or Both? What Really Drives A Nation's Productivity," Working Papers 321, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  55. Luca RICCETTI, 2010. "From Moments, Co-Moments and Mean-Variance weights to Copula Portfolio Allocation," Working Papers 351, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Simone LENZU & Gabriele TEDESCHI, 2012. "Systemic risk on different interbank network topologies," Working Papers 375, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Alessandro STERLACCHINI, 2012. "Patent Oppositions as Competitive Tools: An Analysis of the Major Players in the European Market of White Goods," Working Papers 374, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Ruggero GRILLI & Gabriele TEDESCHI & Mauro GALLEGATI, 2012. "Markets connectivity and financial contagion," Working Papers 382, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Eralba CELA & Tineke FOKKEMA & Elena AMBROSETTI, 2012. "Links Between Transnationalism Integration and Duration of Residence: The Case of eastern European Migrants in Italy," Working Papers 386, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:373. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maurizio Mariotti).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.