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Statistical theories of income and wealth distribution

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  • Chakrabarti, Anindya S.
  • Chakrabarti, Bikas K.

Abstract

The distributions of income and wealth in countries across the world are found to possess some robust and stable features independent of the specific economic, social and political conditions of the countries. We discuss a few physics-inspired multi-agent dynamic models along with their microeconomic counterparts, that can produce the statistical features of the distributions observed in reality. A number of exact analytical methods and solutions are also provided.

Suggested Citation

  • Chakrabarti, Anindya S. & Chakrabarti, Bikas K., 2010. "Statistical theories of income and wealth distribution," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-31.
    • Handle: RePEc:zbw:ifweej:20104
    DOI: 10.5018/economics-ejournal.ja.2010-4
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    2. Anindya S. Chakrabarti, 2011. "Firm dynamics in a closed, conserved economy: A model of size distribution of employment and related statistics," Papers 1112.2168, arXiv.org.
    3. Taisei Kaizoji & Michiko Miyano, 2017. "Zipf's law for share price and company fundamentals," Papers 1702.00144, arXiv.org.
    4. Takeshi Kato, 2022. "Wealth Redistribution and Mutual Aid: Comparison using Equivalent/Nonequivalent Exchange Models of Econophysics," Papers 2301.00091, arXiv.org.
    5. Bertram During & Nicos Georgiou & Enrico Scalas, 2016. "A stylized model for wealth distribution," Papers 1609.08978, arXiv.org, revised Jul 2021.
    6. Lorenzo Pareschi & Giuseppe Toscani, 2014. "Wealth distribution and collective knowledge. A Boltzmann approach," Papers 1401.4550, arXiv.org.
    7. Anirban Chakraborti & Ioane Muni Toke & Marco Patriarca & Frederic Abergel, 2011. "Econophysics review: II. Agent-based models," Quantitative Finance, Taylor & Francis Journals, vol. 11(7), pages 1013-1041.
    8. Anirban Chakraborti & Ioane Muni Toke & Marco Patriarca & Frédéric Abergel, 2011. "Econophysics review: I. Empirical facts," Post-Print hal-00621058, HAL.
    9. Anirban Chakraborti & Ioane Muni Toke & Marco Patriarca & Frederic Abergel, 2011. "Econophysics review: I. Empirical facts," Quantitative Finance, Taylor & Francis Journals, vol. 11(7), pages 991-1012.
    10. Chakrabarti, Anindya S., 2012. "Effects of the turnover rate on the size distribution of firms: An application of the kinetic exchange models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(23), pages 6039-6050.
    11. Chakrabarti, Anindya S. & Chakrabarti, Bikas K., 2010. "Inequality reversal: Effects of the savings propensity and correlated returns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(17), pages 3572-3579.
    12. Diniz, M. & Mendes, F.M., 2012. "Effects of taxation on money distribution," International Review of Financial Analysis, Elsevier, vol. 23(C), pages 81-85.
    13. Takeshi Kato, 2023. "WE economy: Potential of mutual aid distribution based on moral responsibility and risk vulnerability," Papers 2312.06927, arXiv.org.
    14. Chakrabarti, Anindya S., 2011. "An almost linear stochastic map related to the particle system models of social sciences," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(23), pages 4370-4378.

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    More about this item

    Keywords

    Personal Income; Wealth and Their Distributions; Exchange and Production Economies;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • C00 - Mathematical and Quantitative Methods - - General - - - General

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