Inelastically scattering particles and wealth distribution in an open economy

Abstract

Using the analogy with inelastic granular gasses we introduce a model for wealth exchange in society. The dynamics is governed by a kinetic equation, which allows for self-similar solutions. The scaling function has a power-law tail, the exponent being given by a transcendental equation. In the limit of continuous trading, closed form of the wealth distribution is calculated analytically.

8 pages 5 figures

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Cited by in corpus (55)

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• A statistical model with a standard Gamma distribution
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• Dynamics of Money and Income Distributions
• Master equation for a kinetic model of trading market and its analytic solution
• Double power laws in income and wealth distributions
• Wealth distribution under the spread of infectious diseases
• Gibbs versus non-Gibbs distributions in money dynamics
• Wealth distribution and collective knowledge. A Boltzmann approach
• Kinetic models for the trading of goods
• Scaling in Tournaments
• Self-similarity and power-like tails in nonconservative kinetic models
• Econophysics: Empirical facts and agent-based models
• Mesoscopic modelling of financial markets
• Explicit equilibria in a kinetic model of gambling
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• Exploiting the flexibility of a family of models for taxation and redistribution
• An analytic treatment of the Gibbs-Pareto behavior in wealth distribution
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• Ideal-gas like market models with savings: quenched and annealed cases
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