Inequality measures in kinetic exchange models of wealth distributions

Ghosh, Asim; Chatterjee, Arnab; Inoue, Jun; Chakrabarti, Bikas K.

doi:10.1016/j.physa.2016.01.081

Cited by 24 publications

(32 citation statements)

References 26 publications

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“…The case of a saving propensity that takes only two different values is of independent interest. As observed by Gupta in [13] and studied in [60], this case could lead to a steady distribution with a bimodal shape, as observed in the wealth distribution as a consequence of the economic crisis in Argentina around the year 2002 [61,62]. Furthermore, bimodal distributions can appear in the presence of a stressful situation, like for example the one determined by the rapid spreading of the COVID-19 epidemic in Western countries and the consequent lockdown measures assumed by the governments to control and limit its effects [63,64].…”

Section: Introductionmentioning

confidence: 60%

Economic Segregation Under the Action of Trading Uncertainties

et al. 2020

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We study the distribution of wealth in a market economy in which the trading propensity of the agents is uncertain. Our approach is based on kinetic models for collective phenomena, which, at variance with the classical kinetic theory of rarefied gases, has to face the lack of fundamental principles, which are replaced by empirical social forces of which we have at most statistical information. The proposed kinetic description allows recovering emergent wealth distribution profiles, which are described by the steady states of a Fokker–Planck-type equation with uncertain parameters. A statistical study of the stationary profiles of the Fokker–Planck equation then shows that the wealth distribution can develop a multimodal shape in the presence of observable highly stressful economic situations.

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Section: Introductionmentioning

confidence: 60%

Economic Segregation Under the Action of Trading Uncertainties

et al. 2020

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“…It would be interesting to find an interpretation similar to that given here to the economic temperature, but for entropy or free energies. It would also be interesting to study some other economic processes with this formalism, such as economic inequality, which can be characterized by some indices such as the Gini or Kolkata [19,20] to be addressed elsewhere.…”

Section: Resultsmentioning

confidence: 99%

Effect of Savings on a Gas-Like Model Economy with Credit and Debt

Chacón‐Acosta¹,

Ángeles-Sánchez²

2021

Preprint

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In this work, we apply ensemble formalism to a geometric agents model to study the effect of saving propensity in a system with money, credit, and debt. We calculate the partition function to obtain the total money of the system, with which we give an interpretation of the economic temperature in terms of the different payment methods available to the agents. We observe an interplay between the fraction of money that agents can save and the debt that can be financed. We also observe that the system’s entropy increases as the saved proportion increases and increases, even more, when debt is present.

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“…It would be interesting to study some economic processes defined with these generalized rules within the ensemble formalism to determine how their corresponding analogous thermodynamic variables change and eventually compare them with real economic systems. For instance, relate them to indices that characterize inequality such as the Gini or Kolkata [9][10][11]. In future works, this kind of relations will be addressed.…”

Section: Discussionmentioning

confidence: 99%

“…Through exchange models, some economic inequality indices have been explained and calculated from microscopic principles [9][10][11]. When studying the distribution of income and wealth with these models, different trends have been verified, such as the formation of classes [12,13].…”

Section: Introductionmentioning

confidence: 99%

Effect of Savings on a Gas-Like Model Economy with Credit and Debt

Chacón‐Acosta

Ángeles-Sánchez

2021

Entropy

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In kinetic exchange models, agents make transactions based on well-established microscopic rules that give rise to macroscopic variables in analogy to statistical physics. These models have been applied to study processes such as income and wealth distribution, economic inequality sources, economic growth, etc., recovering well-known concepts in the economic literature. In this work, we apply ensemble formalism to a geometric agents model to study the effect of saving propensity in a system with money, credit, and debt. We calculate the partition function to obtain the total money of the system, with which we give an interpretation of the economic temperature in terms of the different payment methods available to the agents. We observe an interplay between the fraction of money that agents can save and their maximum debt. The system’s entropy increases as a function of the saved proportion, and increases even more when there is debt.

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Inequality measures in kinetic exchange models of wealth distributions

Cited by 24 publications

References 26 publications

Economic Segregation Under the Action of Trading Uncertainties

Economic Segregation Under the Action of Trading Uncertainties

Effect of Savings on a Gas-Like Model Economy with Credit and Debt

Effect of Savings on a Gas-Like Model Economy with Credit and Debt

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