A mathematical theory for wealth distribution

Bertram Düring, Daniel Matthes

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

We review a qualitative mathematical theory of kinetic models for wealth distribution in simple market economies. This theory is a unified approach that covers a wide class of such models which have been proposed in the recent literature on econophysics. Based on the analysis of the underlying homogeneous Boltzmann equation, a qualitative description of the evolution of wealth in the largetime regime is obtained. In particular, the most important features of the steady wealth distribution are classified, namely the fatness of the Pareto tail and the tails’ dynamical stability. Most of the applied methods are borrowed from the kinetic theory of rarefied gases. A concise description of the moment hierarchy and suitable metrics for probability measures are employed as key tools.

Original languageEnglish
Title of host publicationModeling and Simulation in Science, Engineering and Technology
PublisherSpringer Basel
Pages81-113
Number of pages33
DOIs
StatePublished - 2010
Externally publishedYes

Publication series

NameModeling and Simulation in Science, Engineering and Technology
Volume51
ISSN (Print)2164-3679
ISSN (Electronic)2164-3725

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