IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/129320.html

Law of Motion for Economic Inequality: An Analogy to Newtonian Mechanics

Author

Listed:
  • Harashima, Taiji

Abstract

This paper demonstrates that the dynamics of economic inequality follow a law of motion closely analogous to Newtonian mechanics. Within this framework, specific types of inherent household heterogeneity generate continuous "forces" that persistently exacerbate inequality, thereby necessitating government intervention as an essential counterforce. This study formally models how the force-based aggravation of economic inequality aligns with classical Newtonian laws—specifically the principles of inertia, acceleration, and action and reaction. Furthermore, the underlying real interest rate is identified as the primary point of application for these forces, where the interest-bearing period determines the transient deformation, or softness, of the economic system. Finally, the force driving inequality is conceptualized as a dynamic interaction among heterogeneous households. These findings provide a novel mathematical foundation for understanding and controlling the persistent widening of economic inequality.

Suggested Citation

  • Harashima, Taiji, 2026. "Law of Motion for Economic Inequality: An Analogy to Newtonian Mechanics," MPRA Paper 129320, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:129320
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/129320/1/MPRA_paper_129320.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    2. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    3. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 1-41.
    4. Elhanan Helpman, 2016. "Globalization and Wage Inequality," NBER Working Papers 22944, National Bureau of Economic Research, Inc.
    5. Harashima, Taiji, 2026. "Law of Motion for Inflation: An Analogy to Newtonian Mechanics," MPRA Paper 128966, University Library of Munich, Germany.
    6. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    7. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    8. Harashima, Taiji, 2010. "Sustainable Heterogeneity: Inequality, Growth, and Social Welfare in a Heterogeneous Population," MPRA Paper 22521, University Library of Munich, Germany.
    9. Harashima, Taiji, 2024. "Numerical Simulation of Economic Depression," MPRA Paper 120508, University Library of Munich, Germany.
    10. Harashima, Taiji, 2022. "Numerical Simulations of Reaching a Steady State: No Need to Generate Any Rational Expectations," MPRA Paper 115335, University Library of Munich, Germany.
    11. Emmanuel Saez & Gabriel Zucman, 2016. "Editor's Choice Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 519-578.
    12. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue nov.
    13. Harashima, Taiji, 2012. "Sustainable Heterogeneity as the Unique Socially Optimal Allocation for Almost All Social Welfare Functions," MPRA Paper 40938, University Library of Munich, Germany.
    14. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    15. Harashima, Taiji, 2009. "A Theory of Total Factor Productivity and the Convergence Hypothesis: Workers’ Innovations as an Essential Element," MPRA Paper 15508, University Library of Munich, Germany.
    16. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harashima, Taiji, 2023. "Secular Increase in Economic Inequality Accompanying a Constant Output/Capital Ratio," MPRA Paper 117705, University Library of Munich, Germany.
    2. Harashima, Taiji, 2018. "An Acceleration Mechanism of Within-Country Inequality by Globalization," MPRA Paper 89807, University Library of Munich, Germany.
    3. Harashima, Taiji, 2023. "Numerical Simulations of How Economic Inequality Increases in Democratic Countries," MPRA Paper 118710, University Library of Munich, Germany.
    4. Harashima, Taiji, 2019. "Preventing Widening Inequality: Economic Rents and Sustainable Heterogeneity," MPRA Paper 95727, University Library of Munich, Germany.
    5. Harashima, Taiji, 2021. "Mechanisms that Make Economic Inequality Increase in Democratic Countries," MPRA Paper 108535, University Library of Munich, Germany.
    6. Harashima, Taiji, 2025. "Numerical Simulation of Economic Inequality Widened by the Persistent Effects of Temporary Rent Income," MPRA Paper 123557, University Library of Munich, Germany.
    7. Monte, Ferdinando, 2011. "Skill bias, trade, and wage dispersion," Journal of International Economics, Elsevier, vol. 83(2), pages 202-218, March.
    8. Muendler, Marc-Andreas, 2017. "Trade, technology, and prosperity: An account of evidence from a labor-market perspective," WTO Staff Working Papers ERSD-2017-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Taiji HARASHIMA, 2018. "Wage Inequality And Innovative Intelligence-Biased Technological Change," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 9(1), pages 17-24.
    10. A. Cetrulo & A. Sbardella & M. E. Virgillito, 2023. "Vanishing social classes? Facts and figures of the Italian labour market," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 97-148, January.
    11. Holger M. Mueller & Paige P. Ouimet & Elena Simintzi, 2015. "Wage Inequality and Firm Growth," LIS Working papers 632, LIS Cross-National Data Center in Luxembourg.
    12. Van Reenen, John, 2011. "Wage inequality, technology and trade: 21st century evidence," Labour Economics, Elsevier, vol. 18(6), pages 730-741.
    13. Sean E. Mulholland, 2019. "Stratification by regulation: Are bootleggers and Baptists biased?," Public Choice, Springer, vol. 180(1), pages 105-130, July.
    14. Mehic, Adrian, 2018. "Industrial employment and income inequality: Evidence from panel data," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 84-93.
    15. Lee, Jong-Wha & Wie, Dainn, 2015. "Technological Change, Skill Demand, and Wage Inequality: Evidence from Indonesia," World Development, Elsevier, vol. 67(C), pages 238-250.
    16. Raveh, Ohad & Reshef, Ariell, 2016. "Capital imports composition, complementarities, and the skill premium in developing countries," Journal of Development Economics, Elsevier, vol. 118(C), pages 183-206.
    17. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
    18. Sari Kerr & Terhi Maczulskij & Mika Maliranta, 2020. "Within and between firm trends in job polarization: the roles of globalization and technology [The skill complementarity of broadband internet]," Journal of Economic Geography, Oxford University Press, vol. 20(4), pages 1003-1039.
    19. Mark Doms & Ethan Lewis, 2006. "Labor supply and personal computer adoption," Working Papers 06-10, Federal Reserve Bank of Philadelphia.
    20. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U. S. Wage Inequality: Re-Assessing the Revisionists," Harvard Institute of Economic Research Working Papers 2095, Harvard - Institute of Economic Research.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:129320. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.