Influence of saving propensity on the power law tail of wealth distribution
Physics and Society
2013-03-19 v1 General Finance
Abstract
Some general features of kinetic multi-agent models are reviewed, with particular attention to the relation between the agent saving propensities and the form of the equilibrium wealth distribution. The effect of a finite cutoff of the saving propensity distribution on the corresponding wealth distribution is studied. Various results about kinetic multi-agent models are collected and used to construct a realistic wealth distribution with zero limit for small values of wealth, an exponential form at intermediate and a power law tail at larger values of wealth.
Keywords
Cite
@article{arxiv.physics/0506028,
title = {Influence of saving propensity on the power law tail of wealth distribution},
author = {Marco Patriarca and Anirban Chakraborti and Guido Germano},
journal= {arXiv preprint arXiv:physics/0506028},
year = {2013}
}
Comments
9 pages, 6 figures. To be presented at the WEHIA 2005, University of Essex, United Kingdom on June 13-15, 2005