Wealth distribution under Yard-Sale exchange with proportional taxes
Authored by R Bustos-Guajardo, Cristian F Moukarzel
Date Published: 2016
DOI: 10.1142/s0129183116500947
Sponsors:
CONACyT Foundation
Platforms:
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Model Documentation:
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Abstract
Recent analysis of a Yard Sale (YS) exchange model supplemented with
redistributive proportional taxation suggested an asymptotic behavior
P(w) similar to 1/w(mu) for the wealth distribution, with a
parameter-dependent exponent mu. Revisiting this problem, it is here
shown analytically, and confirmed by extensive numerical simulation, that the asymptotic behavior of P(omega) is not power-law but rather a
Gaussian. When taxation is weak, we furthermore show that a restricted
-range power-law behavior appears for wealths around the mean value. The
corresponding power-law exponent equals 3/2 when the return distribution
has zero mean.
Tags
Model
condensation
money