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Global inequality has shifted inward, with rising dispersion increasingly occurring within countries rather than between them. Using 8,790 newly harmonised Functional Urban Areas (FUAs), micro-founded labour-market regions encompassing 3.9…

General Economics · Economics 2026-01-21 Isaak Mengesha , Debraj Roy

In this work, we explore the relationship between monetary poverty and production combining relatedness theory, graph theory, and regression analysis. We develop two measures at product level that capture short-run and long-run patterns of…

General Economics · Economics 2021-08-25 Vanessa Echeverri , Juan C. Duque , Daniel E. Restrepo

The benefits of using complex network analysis (CNA) to study complex systems, such as an economy, have become increasingly evident in recent years. However, the lack of a single comparative index that encompasses the overall wellness of a…

Theoretical Economics · Economics 2022-07-12 M. S. Tedesco , M. A. Nunez-Ochoa , F. Ramos , O. Medrano , K Beuchot

This paper develops a framework for assessing the welfare effects of labor income tax changes on married couples. I build a static model of couples' labor supply that features both intensive and extensive margins and derive a tractable…

General Economics · Economics 2021-09-07 Egor Malkov

We propose a stochastic map model of economic dynamics. In the last decade, an array of observations in economics has been investigated in the econophysics literature, a major example being the universal features of inequality in terms of…

General Finance · Quantitative Finance 2015-05-27 Anindya S. Chakrabarti

This study investigates the structural embeddedness of skills in the division of labor. Drawing on O*NET data covering 120 skills across 872 U.S. occupations, we identify three skill communities: general, cognitive, and physical skills.…

Physics and Society · Physics 2025-06-17 Soohyoung Lee , Dawoon Jeong , Jeong-Dong Lee

The relatedness between a country or a firm and a product is a measure of the feasibility of that economic activity. As such, it is a driver for investments at a private and institutional level. Traditionally, relatedness is measured using…

Machine Learning · Computer Science 2022-06-22 Giambattista Albora , Andrea Zaccaria

In the so-called ``fair'' models of peer-to-peer wealth exchanges, economic inequality tends to reach its maximum value asymptotically. This global trend is evident as the richest continuously accumulate a larger share of wealth at the…

Physics and Society · Physics 2023-08-22 Thiago Dias , Sebastián Gonçalves

Cities host diverse people and their mixing is the engine of prosperity. In turn, segregation and inequalities are common features of most cities and locations that enable the meeting of people with different socio-economic status are key…

The personal income distribution (PID) above the Pareto threshold is studied and modeled. A microeconomic model is proposed to simulate the PID and its evolution below and above the Pareto income threshold. The model balances processes of…

General Finance · Quantitative Finance 2008-12-02 Ivan O. Kitov

We provide a mechanistic foundation for economic complexity methods. In our model, an economy's ability to produce an activity depends on the joint presence of required capabilities. We analytically derive the Economic Complexity Index…

General Economics · Economics 2026-05-29 César A. Hidalgo , Viktor Stojkoski

The catch-up effect and the Matthew effect offer opposing characterizations of globalization: the former predicts an eventual convergence as the poor can grow faster than the rich due to free exchanges of complementary resources, while the…

Computers and Society · Computer Science 2021-03-04 Saurabh Mishra , Kuansan Wang

We undertake an exploration of the economic income (Gross Domestic Product, GDP) of Indian districts and cities based on scaling analyses of the dependence of these quantities on associated population size. Scaling analysis provides a…

Physics and Society · Physics 2020-03-25 Anand Sahasranaman , Luis M. A. Bettencourt

By applying network analysis techniques to large input-output system, we identify key sectors in the local/regional economy. We overcome the limitations of traditional measures of centrality by using random-walk based measures, as an…

General Economics · Economics 2022-09-30 Fernando DePaolis , Phil Murphy , M. Clara DePaolis Kaluza

We develop a machine-learning-based method, Principal Smooth-Dynamics Analysis (PriSDA), to identify patterns in economic development and to automate the development of new theory of economic dynamics. Traditionally, economic growth is…

Physics and Society · Physics 2018-12-11 Charles D. Brummitt , Andres Gomez-Lievano , Ricardo Hausmann , Matthew H. Bonds

This study examined the relationship between trade facilitation and economic growth among the middle-income countries from 2010 to 2020 using 94 countries made up of 48 lower-middle-income countries and 46 upper-middle-income countries. The…

General Economics · Economics 2023-05-25 Victor Ushahemba Ijirshar

Economists disagree about the factors driving the substantial increase in residual wage inequality in the US over the past few decades. To identify changes in the returns to unobserved skills, we make a novel assumption about the dynamics…

General Economics · Economics 2025-01-20 Lance Lochner , Youngmin Park , Youngki Shin

In 2016, the majority of full-time employed women in the U.S. earned significantly less than comparable men. The extent to which women were affected by gender inequality in earnings, however, depended greatly on socio-economic…

Econometrics · Economics 2021-06-08 Philipp Bach , Victor Chernozhukov , Martin Spindler

Economic systems are similar with physic systems for their large number of individuals and the exist of equilibrium. In this paper, we present a model applying the equilibrium statistical model in economic systems. Consistent with…

General Finance · Quantitative Finance 2015-04-17 Zhiwu Zheng

Inequality and its consequences are the subject of intense recent debate. Using a simplified model of the economy, we address the relation between inequality and liquidity, the latter understood as the frequency of economic exchanges.…

Economics · Quantitative Finance 2016-08-03 João Pedro Jerico , François P. Landes , Matteo Marsili , Isaac Pérez Castillo , Valerio Volpati