dc.contributor.author HUTZLER, STEFAN dc.date.accessioned 2010-01-19T12:28:06Z dc.date.available 2010-01-19T12:28:06Z dc.date.issued 2005 dc.date.submitted 2005 en dc.identifier.citation Repetowicz P, Hutzler S and Richmond P, `Dynamics of money and income distributions? in Physica A, 356, 2005, pp 641 - 654 en dc.identifier.other Y dc.identifier.uri http://hdl.handle.net/2262/35867 dc.description PUBLISHED en dc.description.abstract We study the model of interacting agents proposed by Chatterjee et al that allows agents to both save and exchange wealth. Closed equations for the wealth distribution are developed using a mean field approximation. We show that when all agents have the same fixed savings propensity, subject to certain well defined approximations defined in the text, these equations yield the conjecture proposed by Chatterjee for the form of the stationary agent wealth distribution. If the savings propensity for the equations is chosen according to some random distribution we show further that the wealth distribution for large values of wealth displays a Pareto like power law tail, ie P(w)\sim w^{1+a}. However the value of \$a\$ for the model is exactly 1. Exact numerical simulations for the model illustrate how, as the savings distribution function narrows to zero, the wealth distribution changes from a Pareto form to to an exponential function. Intermediate regions of wealth may be approximately described by a power law with \$a>1\$. However the value never reaches values of \~ 1.6-1.7 that characterise empirical wealth data. This conclusion is not changed if three body agent exchange processes are allowed. We conclude that other mechanisms are required if the model is to agree with empirical wealth data. en dc.description.sponsorship Science Foundation Ireland (04/BR/P0251) en dc.format.extent 641 en dc.format.extent 654 en dc.format.extent 406449 bytes dc.format.mimetype application/pdf dc.language.iso en en dc.publisher Elsevier en dc.relation.ispartofseries Physica A en dc.relation.ispartofseries 356 en dc.rights Y en dc.subject Elastic and inelastic scattering en dc.subject Kinetic theory en dc.subject Classical statistical mechanics en dc.subject Probability theory en dc.subject Stochastic processes and statistics en dc.subject Dynamics of social systems en dc.subject Environmental studies en dc.title Dynamics of money and income distributions en dc.type Journal Article en dc.contributor.sponsor Science Foundation Ireland dc.type.supercollection scholarly_publications en dc.type.supercollection refereed_publications en dc.identifier.peoplefinderurl http://people.tcd.ie/shutzler dc.identifier.rssinternalid 24645 dc.identifier.rssuri http://arXiv.org/abs/cond-mat/0407770 en dc.identifier.rssuri http://dx.doi.org/10.1016/j.physa.2005.04.010
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