Mounting evidences are being gathered suggesting that income and wealth distribution in various countries or societies follow a robust pattern, close to the Gibbs distribution of energy in an ideal gas in equilibrium, but also deviating significantly for high income groups. Application of physics models seem to provide illuminating ideas and understanding, complimenting the observations.
We consider a number of Artificial Chemistry models for economic activity and what consequences they have for the formation of economic inequality. We are particularly interested in what tax measures are effective in dampening economic inequality. By starting from well-known kinetic exchange models, we examine different scenarios for reducing the tendency of economic activity models to form unequal wealth distribution in equilibrium.
Linking Economic Complexity, Institutions and Income Inequality
Macro Connections, The MIT Media Lab（麻省理工学院媒体实验室）；Fraunhofer Center for International Management and Knowledge Economy（弗劳恩霍夫国际管理与知识经济中心）；Chair for Innovation Management und Economics, University of Leipzig（莱比锡大学创新管理与经济学教席）；Department of Computer Science, Universidad de Playa Ancha（阿纳查海滩大学计算机科学系）；Department of Informatics, Universidad Técnica Federico Santa María（费德里科·圣玛丽亚技术大学信息学系）
Limiting risk to reduce inequality: insights from the Yard-Sale model
Centro Atómico Bariloche (CNEA)（巴里洛切原子中心）；CONICET（阿根廷国家科学研究委员会）；Instituto Balseiro, Universidad Nacional de Cuyo（门多萨国立大学巴尔塞罗研究所）；Universidade Federal do Rio Grande do Sul（南里奥格兰德联邦大学）
For centuries, national economies created wealth by engaging in international trade and production. The resulting international supply networks not only increase wealth for countries, but also create systemic risk: economic shocks, triggered by company failures in one country, may propagate to other countries. Using global supply network data on the firm-level, we present a method to estimate a country's exposure to direct and indirect economic losses caused by the failure of a company in another country. We show the network of systemic risk-flows across the world. We find that rich countries …
To gain insights into the problem of regional inequality, we proposed new regional asset exchange models based on existing kinetic income-exchange models in economic physics. We did this by setting the spatial exchange range and adding bias to asset fraction probability in equivalent exchanges. Simulations of asset distribution and Gini coefficients showed that suppressing regional inequality requires, firstly an increase in the intra-regional economic circulation rate, and secondly the narrowing down of the exchange range (inter-regional economic zone). However, avoiding over-concentration of…
Phase Transitions in Economic Inequality:Taxation and Extremal Replacement Dynamics
Centro Atómico Bariloche (CNEA) and CONICET（巴里洛切原子中心（CNEA）和国家科学研究委员会）；Instituto Balseiro, Universidad Nacional de Cuyo（乌斯帕尔塔国立大学巴尔塞罗研究所）；Universidade Federal do Rio Grande do Sul（南里奥格兰德联邦大学）；Instituto Nacional de Ciência e Tecnologia de Sistemas Complexos, CBPF（复杂系统国家科技研究所，巴西粒子物理中心）
Socio-economic inequalities derived from an exhaustive wealth distribution is studied in a closed geographical region from Transylvania (Romania). Exhaustive wealth data is computed from the agricultural records of the Sancraiu commune for three different economic situations. The gathered data is spanning two different periods from the communist economy and the present situation after 31 years of free market economy in Romania. The local growth and reset model based on an analytically solvable master equation is used to describe the observed data. The model with realistically chosen growth and…
Understanding the statistical dynamics of growth and inequality is a fundamental challenge to ecology and society. Recent analyses of wealth and income dynamics in contemporary societies show that economic inequality is very dynamic and that individuals experience substantially different growth rates over time. However, despite a fast growing body of evidence for the importance of fluctuations, we still lack a general statistical theory for understanding the dynamical effects of heterogeneneous growth across a population. Here we derive the statistical dynamics of correlated growth rates in he…
Economic unions are international agreements oriented to increase economic efficiency and establishing political and cultural ties between the member countries. Becoming a member of an existing union usually requires the approval of both the candidate and members, while leaving it may require only the unilateral will of the exiting country. There are many examples of accession of states to previously consolidated economic unions, and a recent example of leaving is the withdrawal of the United Kingdom from the European Union. Motivated by the Brexit process, in this paper we propose an agent-ba…
Universidade de São Paulo（圣保罗大学）；The Abdus Salam International Centre For Theoretical Physics (ICTP)（阿卜杜斯·萨拉姆国际理论物理中心）；UNAM（墨西哥国立自治大学）；International School for Advanced Studies (SISSA)（高级研究国际学院）；INFN, Sezione di Trieste（意大利国家核物理研究所的里雅斯特分部）
Exploring the economic, social and environmental prospects for commercial natural annual grasslands by performing a sensitivity analysis on a multidisciplinary integrated model
