Econophysics of Wealth Distributions

by Chatterjee, Arnab; Yarlagadda, Sudhakar; Chakrabarti, Bikas K.; Chakrabarti, B. K.

• ISBN13: 9788847003293
• ISBN10: 8847003296
• Format: Hardcover
• Copyright: 2005-09-30
• Publisher: Springer Verlag

Summary

Understanding the distribution of income and wealth in an economy has been a classic problem in economics for the last hundred years. Apart from the rapidly decaying number density of people with their income crossing over to a robust power law for the very rich, known as the Pareto power-law, after Vilfredo Pareto. With the availability of accurate data from finance/income-tax departments of various countries, several robust features of the income distribution have been established. The book will report on the major models developed mainly by the (econo-) physicists over the last decade. Almost all the major physicists and economists involved in these studies will review their latest work and the associated developments. Physics models, in particular the gas models for markets will be extensively utilised and discussed. Apart from simulation studies and their comparison with the latest observed data, major analytical developments will be discussed. This is the first book of its kind emerging out of the workshop where leading scientists from all over the world will discuss and report on their latest results. This field had been dormant for more than a decade, although accurate data had been accumulated over this period. The recent enthusiasm comes mainly from the physicists modelling of markets in analogy with physical systems like gases etc. This is the first book reporting exhaustively on these developments over the last decade by leaders in the field.

Table of Contents

Part I Data and analysis
Pareto's Law of Income Distribution: Evidence for Germany, the United Kingdom, and the United States
Fabio Clementi and Mauro Gallegati	3	(12)
Two-class Structure of Income Distribution in the USA: Exponential Bulk and Power-law Tail
Victor M. Yakovenko and A. Christian Silva	15	(9)
Pareto-Zipf, Gibrat's Laws, Detailed-Balance and their Breakdown
Yoshi Fujiwara	24	(10)
Empirical Study and Model of Personal Income
Wataru Souma and Makoto Nirei	34	(9)
Blockbusters, Bombs and Sleepers: The Income Distribution of Movies
Sitabhra Sinha and Raj Kumar Pan	43	(8)
Part II Models and theories
Emergent Statistical Wealth Distributions in Simple Monetary Exchange Models: A Critical Review
Thomas Lux	51	(10)
Lagrange Principle of Wealth Distribution
Jurgen Mimkes and Geoff Willis	61	(9)
Carnot Process of Wealth Distribution
Jürgen Mimkes and Yuji Aruka	70	(9)
Ideal-Gas Like Markets: Effect of Savings
Arnab Chatterjee and Bikas K Chakrabarti	79	(14)
Kinetic Theory Models for the Distribution of Wealth: Power Law from Overlap of Exponentials
Marco Patriarca, Anirban Chakraborti, Kimmo Kaski and Guido Germano	93	(18)
Detailed Simulation Results for Some Wealth Distribution Models in Econophysics
K. Bhattacharya, G. Mukherjee and S.S. Manna	111	(9)
Dynamics of Money and Income Distributions
Peter Richmond, Przemyslaw Repetowicz and Stefan Hutzler	120	(6)
Dynamic Process of Money Transfer Models
Yougui Wang and Ning Ding	126	(11)
A Stochastic Trading Model of Wealth Distribution
Sudhakar Yarlagadda and Arnab Das	137	(12)
Wealth Distribution in a Network with Correlations Between Links and Success
S. Risau Gusman, M.F. Laguna and J.R. Iglesias	149	(10)
The Monomodal, Polymodal, Equilibrium and Nonequilibrium Distribution of Money
Juan C. Ferrero	159	(9)
Relieving Poverty by Modifying Income and Wealth Distributions
Geoff Willis	168	(9)
The Rich Are Different! Pareto Law from Asymmetric Interactions in Asset Exchange Models
Sitabhra Sinha	177	(7)
Do We All Face the Same Constraints?
Mishael Milakoyic	184	(11)
Part III Related studies
A Stochastic Model of Wealth Distribution
Indrani Bose and Subhasis Banerjee	195	(4)
How the Rich Get Richer
Anita Mehta, AS Majumdar and JM Luck	199	(6)
Power-Law Distribution in an Emerging Capital Market
Debasis Bagchi	205	(5)
Statistical Analysis on Bombay Stock Market
A. Sarkar and P. Barat	210	(4)
Funds Management by Banks in India: Solution to a Persisting Optimization Problem
Udayan Kumar Basu	214	(4)
Income Distribution in the Boltzmann-Pareto Framework
Dipti Prakas Pal and Hridis Kr. Pal	218	(7)
Part IV Comments and Discussions
Econophys-Kolkata: A Short Story
Bikas K Chakrabarti	225	(4)
Econophysics of Wealth Distribution: A Comment
Paul M. Anglin	229	(10)
Econophysics of Wealth Distributions: Workshop Summaries
Peter Richmond, Jürgen Mimkes, Mauro Gallegati, Thomas Lux, and Victor M Yakovenko	239