Emergence of Inequality in Income and Wealth Dynamics

Autor: Changhee Cho, Jihun Park, Biseko Juma Mafwele, Quang Anh Le, Hye Jin Park, Jae Woo Lee
Jazyk: angličtina
Rok vydání: 2023
Předmět:
Zdroj: Entropy, Vol 25, Iss 8, p 1129 (2023)
Druh dokumentu: article
ISSN: 1099-4300
DOI: 10.3390/e25081129
Popis: Increasing wealth inequality is a significant global issue that demands attention. While the distribution of wealth varies across countries based on their economic stages, there is a universal trend observed in the distribution function. Typically, regions with lower wealth values exhibit an exponential distribution, while regions with higher wealth values demonstrate a power-law distribution. In this review, we introduce measures that effectively capture wealth inequality and examine wealth distribution functions within the wealth exchange model. Drawing inspiration from the field of econophysics, wealth exchange resulting from economic activities is likened to a kinetic model, where molecules collide and exchange energy. Within this framework, two agents exchange a specific amount of wealth. As we delve into the analysis, we investigate the impact of various factors such as tax collection, debt allowance, and savings on the wealth distribution function when wealth is exchanged. These factors play a crucial role in shaping the dynamics of wealth distribution.
Databáze: Directory of Open Access Journals
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