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Wealth rheology

Author

Listed:
  • Zdzislaw Burda

    (AGH University of Science and Technology, Faculty of Physics and Applied Computer Science)

  • Malgorzata J. Krawczyk

    (AGH University of Science and Technology, Faculty of Physics and Applied Computer Science)

  • Krzysztof Malarz

    (AGH University of Science and Technology, Faculty of Physics and Applied Computer Science)

  • Malgorzata Snarska

    (Cracow University of Economics, Department of Financial Markets)

Abstract

We study wealth rank correlations in a simple model of macro-economy. To quantify rank correlations between wealth rankings at different times, we use Kendall's $\tau$ and Spearman's $\rho$, Goodman--Kruskal's $\gamma$, and the lists' overlap ratio. We show that the dynamics of wealth flow and the speed of reshuffling in the ranking list depend on parameters of the model controlling the wealth exchange rate and the wealth growth volatility. As an example of the rheology of wealth in real data, we analyze the lists of the richest people in Poland, Germany, the USA and the world.

Suggested Citation

  • Zdzislaw Burda & Malgorzata J. Krawczyk & Krzysztof Malarz & Malgorzata Snarska, 2021. "Wealth rheology," Papers 2105.08048, arXiv.org, revised Jun 2021.
    • Handle: RePEc:arx:papers:2105.08048
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    References listed on IDEAS

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