Exploiting the flexibility of a family of models for taxation and redistribution

Abstract

We discuss a family of models expressed by nonlinear differential equation systems describing closed market societies in the presence of taxation and redistribution. We focus in particular on three example models obtained in correspondence to different parameter choices. We analyse the influence of the various choices on the long time shape of the income distribution. Several simulations suggest that behavioral heterogeneity among the individuals plays a definite role in the formation of fat tails of the asymptotic stationary distributions. This is in agreement with results found with different approaches and techniques. We also show that an excellent fit for the computational outputs of our models is provided by the k-generalized distribution introduced by G. Kaniadakis (Physica A 296 (2001) 405-425).

17 pages, 5 figures. Accepted for publication in Eur. Phys. J. B. arXiv admin note: text overlap with arXiv:1109.0606

References in corpus (5)

• Kinetic Exchange Models for Income and Wealth Distributions
• k-Generalized Statistics in Personal Income Distribution
• The k-generalized distribution: A new descriptive model for the size distribution of incomes
• The Gompertz-Pareto Income Distribution
• From microscopic taxation and redistribution models to macroscopic income distributions

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