Wealth Condensation in Pareto Macro-Economies

Abstract

We discuss a Pareto macro-economy (a) in a closed system with fixed total wealth and (b) in an open system with average mean wealth and compare our results to a similar analysis in a super-open system (c) with unbounded wealth. Wealth condensation takes place in the social phase for closed and open economies, while it occurs in the liberal phase for super-open economies. In the first two cases, the condensation is related to a mechanism known from the balls-in-boxes model, while in the last case to the non-integrable tails of the Pareto distribution. For a closed macro-economy in the social phase, we point to the emergence of a ``corruption'' phenomenon: a sizeable fraction of the total wealth is always amassed by a single individual.

4 pages, 1 figure

References in corpus (2)

• Condensation in the Backgammon model
• Phase diagram of the mean field model of simplicial gravity

Cited by in corpus (58)

• Critical phenomena in complex networks
• Nonequilibrium Statistical Mechanics of the Zero-Range Process and Related Models
• Colloquium: Statistical mechanics of money, wealth, and income
• Inelastically scattering particles and wealth distribution in an open economy
• Canonical Analysis of Condensation in Factorised Steady State
• Current fluctuations in the zero-range process with open boundaries
• Zero-range process with open boundaries
• Interaction driven real-space condensation
• Principles of statistical mechanics of random networks
• Exact Solution for the Time Evolution of Network Rewiring Models
• A Trade-Investment Model for Distribution of Wealth
• Condensation transition in the late-time position of a Run-and-Tumble particle
• Exact Solutions for Network Rewiring Models
• Condensation in stochastic mass transport models: beyond the zero-range process
• Non-equilibrium steady states of ideal bosonic and fermionic quantum gases
• Explosive condensation in a mass transport model
• Anomalous scaling and first-order dynamical phase transition in large deviations of the Ornstein-Uhlenbeck process
• Critical phase in non-conserving zero-range processes and equilibrium networks
• Scale-free networks as preasymptotic regimes of superlinear preferential attachment
• Complex networks created by aggregation
• Simulation of a generalized asset exchange model with economic growth and wealth distribution
• Motion of condensates in non-Markovian zero-range dynamics
• Zero-range processes with saturated condensation: the steady state and dynamics
• Condensation and topological phase transitions in a dynamical network model with rewiring of the links
• Temporally correlated zero-range process with open boundaries: Steady state and fluctuations
• Replica analysis of a preferential urn model
• Balls-in-boxes condensation on networks
• Nonequilibrium Thermodynamics of Wealth Condensation
• Lower current large deviations for zero-range processes on a ring
• Urn model for products' shares in international trade
• The Nonuniversality of Wealth Distribution Tails Near Wealth Condensation Criticality
• Local structure of current fluctuations in diffusive systems beyond one dimension
• Condensation in an Economic Model with Brand Competition
• Dynamics of Wealth Inequality
• Mean-field theory of an asset exchange model with economic growth and wealth distribution
• Flashing annihilation term of a logistic kinetic as a mechanism leading to Pareto distributions
• Emergent motion of condensates in mass-transport models
• Rényi Entropy of Zeta-Urns
• On Random Allocation Models in the Thermodynamic Limit
• Why only few are so successful ?
• Oligarchy as a Phase Transition: The effect of wealth-attained advantage in a Fokker-Planck description of asset exchange
• Maintenance of order in a moving strong condensate
• Condensation in models with factorized and pair-factorized stationary states
• Wealth rheology
• Zero range and finite range processes with asymmetric rate functions
• Condensation phase transition in nonlinear fitness networks
• Localization in boundary-driven lattice models
• Matrix Product States for Interacting Particles without Hardcore Constraints
• Econophysics, Statistical Mechanics Approach to
• Yang-Lee zeros for real-space condensation
• Slow dynamics of Zero Range Process in the Framework of Traps Model
• Markov Chain Hidden behind Power Law Mechanism of Self-organized Criticality
• Condensate formation in a zero-range process with random site capacities
• First-order condensation transition in the position distribution of a run-and-tumble particle in one dimension
• Stock-flow consistent macroeconomic model with nonuniform distributional constraint
• Evidence of Self-Organization in Time Series of Capital Markets
• Condensation transition in a conserved generalized interacting zero-range process
• Interaction-free ergodicity-breaking driven by temporally hyperuniform noise