In this work, we modify the affine wealth model of distributions to examine effects nonconstant redistribution on very wealthy. Previous studies model, restricted flat schemes, have demonstrated presence a phase transition partially wealth-condensed state, or “partial oligarchy,” at critical value an order parameter. These also indicated exponential tail in distribution precisely criticality. A...

We show that wealth inequality in the UK is high and has increased slightly over past decade as financial asset prices have wake of crisis. But data deficiencies are a major barrier understanding true distribution, composition size household wealth. The most comprehensive survey does good job capturing vast majority but nearly £800 billion held by very wealthiest households missing. also find t...

This paper presents an explicitly solved model of wealth distribution in an infinite-horizon incomplete-markets economy. The agent aims to hold a target level of wealth in order to partially buffer income shocks. The notion of buffering suggests that the agent’s wealth is less skewed and less fat-tailed than his income in the long run. Infinite-horizon setting implies that the cross-sectional j...

We study the wealth distribution of the Bouchaud-Mézard model on complex networks. It is known from numerical simulations that this distribution depends on the topology of the network; however, no one has succeeded in explaining it. Using "adiabatic" and "independent" assumptions along with the central-limit theorem, we derive equations that determine the probability distribution function. The ...

The paper tries to relate inequality, occupational choice and long run wealth. Defining the unskilled as poor, skilled group as middle class and entrepreneurs as rich the paper focusesstarting from a huge middle class relative to the rich along with a higher fraction of borrowing entrepreneurs within the rich group, an economy converges with a very low wealth level. In other words, one needs to...

We explore the link between wealth inequality and output fluctuations in a general two-sector neoclassical growth model with endogenous labor and heterogeneous agents. When agents have homogeneous CRRA preferences and individual wealth is Pareto distributed a sufficiently large rise in the Gini index typically leads to an increase in endogenous fluctuations of output. For general economies, we ...