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We propose some kinetic models of wealth exchange and investigate their behavior on directed networks though numerical simulations. We observe that network topology and directedness yields a variety of interesting features in these models.…

Physics and Society · Physics 2009-11-13 Arnab Chatterjee

The Benini distribution is a lognormal-like distribution generalizing the Pareto distribution. Like the Pareto and the lognormal distributions it was originally proposed for modeling economic size distributions, notably the size…

Other Statistics · Statistics 2016-08-19 Christian Kleiber

We develop a formalism to study linearized perturbations around the equilibria of a pure exchange economy. With the use of mean field theory techniques, we derive equations for the flow of products in an economy driven by heterogeneous…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 Samuel E. Vazquez , Simone Severini

Over the past two decades, shrinkage priors have become increasingly popular, and many proposals can be found in the literature. These priors aim to shrink small effects to zero while maintaining true large effects. Horseshoe-type priors…

Statistics Theory · Mathematics 2025-01-14 Maria De Iorio , Andreas Heinecke , Beatrice Franzolini , Rafael Cabral

This paper analyzes the equilibrium distribution of wealth in an economy where firms' productivities are subject to idiosyncratic shocks, returns on factors are determined in competitive markets, dynasties have linear consumption functions…

General Finance · Quantitative Finance 2009-06-11 Davide Fiaschi , Matteo Marsili

The inequality of wealth distribution is a universal phenomenon in the civilized nations, and it is often imputed to the Matthew effect, that is, the rich get richer and the poor get poorer. Some philosophers unjustified this phenomenon and…

Physics and Society · Physics 2014-02-18 Bojin Zheng , Wenhua Du , Wanneng Shu , Jianmin Wang , Deyi Li

We present a detailed numerical analysis of the modified version of a conservative self-organized extremal model introduced by Pianegonda et. al. for the distribution of wealth of the people in a society. Here the trading process has been…

General Finance · Quantitative Finance 2015-05-30 Abhijit Chakraborty , G. Mukherjee , S. S. Manna

The recent empirical work of Amaya et al. (2015) has pointed out that the realized skewness, which is the sample skewness of intraday high-frequency returns of a financial asset, serves as forecasting future returns in the cross-section.…

Statistics Theory · Mathematics 2018-01-22 Yuta Koike , Zhi Liu

The effects of saving and spending patterns on holding time distribution of money are investigated based on the ideal gas-like models. We show the steady-state distribution obeys an exponential law when the saving factor is set uniformly,…

Physics and Society · Physics 2009-11-11 Ning Ding , Ning Xi , Yougui Wang

The statistics of work performed on a system by a sudden random quench is investigated. Considering systems with finite dimensional Hilbert spaces we model a sudden random quench by randomly choosing elements from a Gaussian unitary…

Quantum Physics · Physics 2017-05-31 Marcin Łobejko , Jerzy Łuczka , Peter Talkner

We study the dynamics of individual agents in some kinetic models of wealth exchange, particularly, the models with savings. For the model with uniform savings, agents perform simple random walks in the "wealth space". On the other hand, we…

Physics and Society · Physics 2011-01-04 Arnab Chatterjee , Parongama Sen

The tube model is a central concept in polymer physics, and allows to reduce the complex many-filament problem of an entangled polymer solution to a single filament description. We investigate the probability distribution function of…

Soft Condensed Matter · Physics 2009-08-12 Hauke Hinsch , Erwin Frey

The basic principle of any version of insurance is the paradigm that exchanging risk by sharing it in a pool is beneficial for the participants. In case of independent risks with a finite mean this is the case for risk averse decision…

Risk Management · Quantitative Finance 2025-10-08 Alfred Müller

We establish an abstract quenched linear response result for random dynamical systems, which we then apply to the case of smooth expanding on average cocycles on the unit circle. In sharp contrast to the existing results in the literature,…

Dynamical Systems · Mathematics 2022-11-30 Davor Dragičević , Paolo Giulietti , Julien Sedro

We study the distributions of money in a simple closed economic system for different types of monetary transactions. We know that for arbitrary and random sharing but locally conserving money transactions, the money distribution goes to the…

Statistical Mechanics · Physics 2009-11-07 Anirban Chakraborti

There are some real life issues that are exists in nature which has early failure. This type of problems can be modelled either by a complex distribution having more than one parameter or by finite mixture of some distribution. In this…

Statistics Theory · Mathematics 2024-08-30 Brijesh P. Singh , Utpal Dhar Das , Sandeep Singh

A money-based model for the power law distribution (PLD) of wealth in an economically interacting population is introduced. The basic feature of our model is concentrating on the capital movements and avoiding the complexity of micro…

Other Condensed Matter · Physics 2009-11-10 Yan-Bo Xie , Bo Hu , Tao Zhou , Bing-Hong Wang

Using the Generalised Lotka Volterra (GLV) model adapted to deal with muti agent systems we can investigate economic systems from a general viewpoint and obtain generic features common to most economies. Assuming only weak generic…

Statistical Mechanics · Physics 2009-11-07 Sorin Solomon , Peter Richmond

We consider the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving (two-body) collision. Unlike in the ideal gas, we introduce saving propensity…

Statistical Mechanics · Physics 2008-12-02 Bikas K. Chakrabarti , Arnab Chatterjee

We study portfolio selection in a complete continuous-time market where the preference is dictated by the rank-dependent utility. As such a model is inherently time inconsistent due to the underlying probability weighting, we study the…

Mathematical Finance · Quantitative Finance 2020-06-04 Ying Hu , Hanqing Jin , Xun Yu Zhou