The Nonuniversality of Wealth Distribution Tails Near Wealth Condensation Criticality

Nonequilibrium Thermodynamics of Wealth Condensation

We analyze wealth condensation for a wide class of stochastic economy models on the basis of the economic analog of thermodynamic potentials, termed transfer potentials. The economy model is based on three common transfers modes of wealth: random transfer, profit proportional to wealth and motivation of poor agents to work harder. The economies never reach steady state. Wealth condensation is t...

Wealth condensation in pareto macroeconomies.

We discuss a Pareto macroeconomy (a) in a closed system with fixed total wealth and (b) in an open system with average mean wealth, and compare our results to a similar analysis in a super-open system (c) with unbounded wealth [J.-P. Bouchaud and M. Mézard, Physica A 282, 536 (2000)]. Wealth condensation takes place in the social phase for closed and open economies, while it occurs in the liber...

Distribution of Wealth

Einstein condensation in a simple model of economy and emergence of Pareto - tails in wealth distributions

We present a simple microscopic model of economy to explain the Pareto law in tails of wealth distributions. Our model is a kind of the so-called Monkey class urn model in which N urns (might be regarded as people in society) share M = ρN balls (might be regarded as money) under global constraint (a conservation of the total amount of money) : n1+· · ·+nN = M , where ni (i = 1, · · · , N) means...

Wealth Distribution within Couples

Wealth Distribution within Couples While most studies on wealth inequality focus on the inequality between households, this paper examines the distribution of wealth within couples. For this purpose, we make use of unique individual level micro data from the German Socio-Economic Panel Study (SOEP). In married and cohabiting couples men’s net worth, on average, is 33,000 euros higher than women...