Exchanges in complex networks: income and wealth distributions
AbstractWe investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree distribution of the underlying network and in particular we verify that scale free networks generate distributions with power-law tails in the high-income region. Numerical simulations of wealth exchanges performed on two different kind of networks show the inner relation between the wealth distribution and the network properties and confirm the agreement with a self-consistent solution. We show that empirical data for the income distribution in Australia are qualitatively well described by our theoretical predictions.
Download InfoIf 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.
Bibliographic InfoPaper provided by arXiv.org in its series Papers with number cond-mat/0310544.
Date of creation: Oct 2003
Date of revision:
Publication status: Published in in "The Physics of Complex Systems (New Advances and Perspectives)", Eds. F. Mallamace and H. E. Stanley, (IOS Press, Amsterdam 2004) 435.
Contact details of provider:
Web page: http://arxiv.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fabio Clementi & Mauro Gallegati, 2005.
"Pareto's Law of Income Distribution: Evidence for Grermany, the United Kingdom, and the United States,"
- F. Clementi & M. Gallegati, 2005. "Pareto's Law of Income Distribution: Evidence for Germany, the United Kingdom, and the United States," Papers physics/0504217, arXiv.org, revised Mar 2006.
- Wright, Ian, 2009.
"Implicit Microfoundations for Macroeconomics,"
Economics - The Open-Access, Open-Assessment E-Journal,
Kiel Institute for the World Economy, vol. 3(19), pages 1-27.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators).
If references are entirely missing, you can add them using this form.