Inelastically scattering particles and wealth distribution in an open economy
Statistical Mechanics
2008-12-02 v2 Disordered Systems and Neural Networks
General Finance
Abstract
Using the analogy with inelastic granular gasses we introduce a model for wealth exchange in society. The dynamics is governed by a kinetic equation, which allows for self-similar solutions. The scaling function has a power-law tail, the exponent being given by a transcendental equation. In the limit of continuous trading, closed form of the wealth distribution is calculated analytically.
Keywords
Cite
@article{arxiv.cond-mat/0311235,
title = {Inelastically scattering particles and wealth distribution in an open economy},
author = {Frantisek Slanina},
journal= {arXiv preprint arXiv:cond-mat/0311235},
year = {2008}
}
Comments
8 pages 5 figures