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Mexico has kept electronic records of all taxable transactions since 2014. Anonymized data collected by the Mexican federal government comprises more than 80 million contributors (individuals and companies) and almost 7 billion…

Social and Information Networks · Computer Science 2024-01-26 Martin Zumaya , Rita Guerrero , Eduardo Islas , Omar Pineda , Carlos Gershenson , Gerardo Iñiguez , Carlos Pineda

Under conditions of market equilibrium, the distribution of capital income follows a Pareto power law, with an exponent that characterizes the given equilibrium. Here, a simple taxation scheme is proposed such that the post-tax capital…

Economics · Quantitative Finance 2018-03-14 Jacques Tempere

While optimal taxation theory provides clear prescriptions for tax design, translating these insights into actual tax codes remains difficult. Existing work largely offers theoretical characterizations of optimal systems, while practical…

General Finance · Quantitative Finance 2026-01-23 Mark Verhagen , Menno Schellekens , Michael Garstka

We present here a general framework, expressed by a system of nonlinear differential equations, suitable for the modelling of taxation and redistribution in a closed (trading market) society. This framework allows to describe the evolution…

Physics and Society · Physics 2011-09-06 Maria Letizia Bertotti , Giovanni Modanese

In France, income tax is computed from taxpayers' individual returns, using an algorithm that is authored, designed and maintained by the French Public Finances Directorate (DGFiP). This algorithm relies on a legacy custom language and…

Programming Languages · Computer Science 2021-01-26 Denis Merigoux , Raphaël Monat , Jonathan Protzenko

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected…

General Finance · Quantitative Finance 2008-12-02 Sebastian D. Guala

We present a simple tatonnement process based on a decomposition method which is simple to implement and achieves the maximal social welfare, under the assumption that the utility function of each [price-taking] individual will be his own…

Optimization and Control · Mathematics 2018-04-17 Ali Kakhbod , Joseph Koo , Demosthenis Teneketzis

In this paper we consider the problem of computing the stationary distribution of nearly completely decomposable Markov processes, a well-established area in the classical theory of Markov processes with broad applications in the design,…

Numerical Analysis · Mathematics 2025-06-19 Vasileios Kalantzis , Mark S. Squillante , Chai Wah Wu

Chain-of-thought reasoning is often treated as a monotone way to improve language-model accuracy by letting a model think longer. We identify a countervailing effect, the coupling tax: when reasoning traces and final answers share one…

Machine Learning · Computer Science 2026-05-11 Wenhua Nie , Junlin Liu , Jianan Wu , Zijie Meng , Yilong Fan , Zhang Zijian , Haoran Zheng , Jyh-Shing Roger Jang

Tax manipulation comes in a variety of forms with different motivations and of varying complexities. In this paper, we deal with a specific technique used by tax-evaders known as circular trading. In particular, we define algorithms for the…

Data Structures and Algorithms · Computer Science 2017-11-07 Jithin Mathews , Priya Mehta , S. V. Kasi Visweswara Rao , Ch. Sobhan Babu

We consider the problem of Bayesian inference for changepoints where the number and position of the changepoints are both unknown. In particular, we consider product partition models where it is possible to integrate out model parameters…

Computation · Statistics 2017-03-14 Alan Benson , Nial Friel

We develop a system-theoretic framework for the structured analysis of distributed optimization algorithms with decomposable cost functions. We model such algorithms as a network of interacting dynamical systems and derive tests for…

Optimization and Control · Mathematics 2026-04-14 Aron Karakai , Jaap Eising , Andrea Martinelli , Florian Dörfler

Automatic bill classification is an attractive task with many potential applications such as automated detection and counting in images or videos. To address this purpose we present a Deep Learning Model to classify Chilean Banknotes,…

Computer Vision and Pattern Recognition · Computer Science 2019-12-30 Daniel San Martin , Daniel Manzano

A divide-and-conquer approach to analyzing Markov chains (MCs) is not utilized as widely as it could be, despite its potential benefits. One primary reason for this is the fact that most MC decomposition approaches involve a complex and…

Probability · Mathematics 2021-02-25 Katsunobu Sasanuma , Robert Hampshire , Alan Scheller-Wolf

Many biological and medical questions can be modeled using time-to-event data in finite-state Markov chains, with the phase-type distribution describing intervals between events. We solve the inverse problem: given a phase-type…

Dynamical Systems · Mathematics 2024-11-19 Ovidiu Radulescu , Dima Grigoriev , Matthias Seiss , Maria Douaihy , Mounia Lagha , Edouard Bertrand

Personal income distribution may exhibit a two-class structure, such that the lower income class of the population (85-98%) is described by exponential Boltzmann-Gibbs distribution, whereas the upper income class (15-2%) has a Pareto…

Statistical Finance · Quantitative Finance 2022-10-05 Paulo H. dos Santos , Igor D. S. Siciliani , M. H. R. Tragtenberg

We consider large scale cost allocation problems and consensus seeking problems for multiple agents, in which agents are suggested to collaborate in a distributed algorithm to find a solution. If agents are strategic to minimize their own…

Optimization and Control · Mathematics 2013-04-11 Takashi Tanaka , Farhad Farokhi , Cédric Langbort

This paper establishes a Markov chain model as a unified framework for understanding information consumption processes in complex networks, with clear implications to the Internet and big-data technologies. In particular, the proposed model…

Social and Information Networks · Computer Science 2016-02-03 David Shui Wing Hui , Yi-Chao Chen , Gong Zhang , Weijie Wu , Guanrong Chen , John C. S. Lui , Yingtao Li

Fair re-ranking aims to redistribute ranking slots among items more equitably to ensure responsibility and ethics. The exploration of redistribution problems has a long history in economics, offering valuable insights for conceptualizing…

Information Retrieval · Computer Science 2024-04-30 Chen Xu , Xiaopeng Ye , Wenjie Wang , Liang Pang , Jun Xu , Tat-Seng Chua

This study proposes a reversible jump Markov chain Monte Carlo method for estimating parameters of lognormal distribution mixtures for income. Using simulated data examples, we examined the proposed algorithm's performance and the accuracy…

Econometrics · Economics 2025-10-28 Kazuhiko Kakamu
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