Kinetic Exchange Models in Economics and Sociology

Goswami, Sanchari; Chakraborti, Anirban

doi:10.1007/978-3-319-12328-8_4

Cited by 4 publications

(4 citation statements)

References 71 publications

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“…For a large number of molecules (N → ∞) and a sufficient number of time steps (t → ∞), the system reaches an equilibrium (or steady-state) distribution [30]. The equilibrium distribution turns out to be the Boltzmann-Gibbs (exponential) distribution, as shown in Fig.…”

Section: Simulation Of the Kinetic Energy Exchange Modelmentioning

confidence: 98%

“…6). Thus, for 0 < λ < 1, the market is effectively 'interacting' [30]. The relaxation time to reach the steady state distribution is a complicated function of the saving propensity λ and the system size N 5) are best fitted by the Gamma-distribution (see [39,40]).…”

Section: Model With Uniform Savingmentioning

confidence: 99%

“…Most interestingly for the physicists, the KWEMs in the regime 0 < λ < 1, seem to reproduce the energy dynamics of a D-dimensional system, with the additional remarkable feature that the corresponding dimension D can assume any real value [33,30,39], and also establishes interesting links with a generalized D-dimensional kinetic theory with real spatial dimension D [52,53]. Numerical simulations suggest that at equilibrium, the system has a Gamma-distribution of order n, coinciding with the Boltzmann-Gibbs energy distribution for a D-dimensional gas with D = 2n.…”

Section: Model With Uniform Savingmentioning

confidence: 99%

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Physicists' approach to studying socio-economic inequalities: Can humans be modelled as atoms?

Sharma¹,

Chakraborti²

2016

Preprint

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A brief overview of the models and data analyses of income, wealth, consumption distributions by the physicists, are presented here. It has been found empirically that the distributions of income and wealth possess fairly robust features, like the bulk of both the income and wealth distributions seem to reasonably fit both the log-normal and Gamma distributions, while the tail of the distribution fits well to a power law (as first observed by sociologist Pareto). We also present our recent studies of the unit-level expenditure on consumption across multiple countries and multiple years, where it was found that there exist invariant features of consumption distribution: the bulk is log-normally distributed, followed by a power law tail at the limit. The mechanisms leading to such inequalities and invariant features for the distributions of socio-economic variables are not well-understood. We also present some simple models from physics and demonstrate how they can be used to explain some of these findings and their consequences.

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Section: Simulation Of the Kinetic Energy Exchange Modelmentioning

confidence: 98%

Section: Model With Uniform Savingmentioning

confidence: 99%

Section: Model With Uniform Savingmentioning

confidence: 99%

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Physicists' approach to studying socio-economic inequalities: Can humans be modelled as atoms?

Sharma¹,

Chakraborti²

2016

Preprint

Self Cite

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“…Mariacristina and Giulio [11] study the influence of agent's savings on wealth distribution and find out the factors causing wealth inequality. Other discrete models on wealth distribution can be found in [12][13][14][15][16].…”

Section: Introductionmentioning

confidence: 99%

The Investigation of a Wealth Distribution Model on Isolated Discrete Time Domains

Huang

Xie

2020

Mathematical Problems in Engineering

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A wealth distribution model on isolated discrete time domains, which allows the wealth to exchange at irregular time intervals, is used to describe the effect of agent’s trading behavior on wealth distribution. We assume that the agents have different degrees of risk aversion. The hyperbolic absolute risk aversion (HARA) utility function is employed to describe the degrees of risk aversion of agents, including decreasing relative risk aversion (DRRA), increasing relative risk aversion (IRRA), and constant relative risk aversion (CRRA). The effect of agent’s expectation on wealth distribution is taken into account in our wealth distribution model, in which the agents are allowed to adopt certain trading strategies to maximize their utility and improve their wealth status. The Euler equation and transversality condition for the model on isolated discrete time domains are given to prove the existence of the optimal solution of the model. The optimal solution of the wealth distribution model is obtained by using the method of solving the rational expectation model on isolated discrete time domains. A numerical example is given to highlight the advantages of the wealth distribution model.

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The life cycle model of chinese empire dynamics (221 BC–1912 AD)

Lü

Chen

2021

The Journal of Mathematical Sociology

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Kinetic Exchange Models in Economics and Sociology

Cited by 4 publications

References 71 publications

Physicists' approach to studying socio-economic inequalities: Can humans be modelled as atoms?

Physicists' approach to studying socio-economic inequalities: Can humans be modelled as atoms?

The Investigation of a Wealth Distribution Model on Isolated Discrete Time Domains

The life cycle model of chinese empire dynamics (221 BC–1912 AD)

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