The paper presents a solution to a mathematical problem namely; what will be the distribution function of P particles in N boxes when all the different possible configurations of particles and boxes have an equal probability. (Usually the assumption is that there is an equal probability to any box). The obtained distribution function yields an uneven number of particles in the boxes. It seems t...

We study the dynamics of the distribution of wealth in an overlapping generation economy with …nitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents to both labor and capital income risk. We show that the stationary wealth distribution is a Pareto distribution in the right tail and that it is capital income risk, rather than labor i...

Precis: Lyons' (1972) data on the distribution of Irish wealth are considered and the appropriateness of the lognormal and Pareto models for this data are assessed using relatively sophisticated statistical methods. Allowance is made for the 65 per cent of individuals whose estate size is unrecorded. New estimates of total wealth and of the distribution of wealth in Ireland are obtained. Part o...

In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to the model where money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. I...

We focus on the problem of how wealth is distributed among the units of a networked economic system. We first review the empirical results documenting that in many economies the wealth distribution is described by a combination of log– normal and power–law behaviours. We then focus on the Bouchaud–Mézard model of wealth exchange, describing an economy of interacting agents connected through an ...

Increasing income and wealth inequality has led to renewed interest in understanding and explaining wealth and income distributions, and in particular the recent growth in their top shares (Piketty, 2014). The literature has largely emphasized the role of earnings inequality in explaining wealth inequality. Indeed, Bewley-Aiyagari economies, which focus on precautionary savings as an optimal re...