Article ID Journal Published Year Pages File Type
9727710 Physica A: Statistical Mechanics and its Applications 2005 10 Pages PDF
Abstract
We develop a general framework, based on Boltzmann transport theory, to analyze the distribution of wealth in societies. Within this framework we derive the distribution function of wealth by using a two-party trading model for the poor people, while for the rich people a new model is proposed, where interaction with wealthy entities (huge reservoir) is relevant. At equilibrium, the interaction with wealthy entities gives a power-law (Pareto-like) behavior in the wealth distribution, while the two-party interaction gives a Boltzmann-Gibbs distribution.
Related Topics
Physical Sciences and Engineering Mathematics Mathematical Physics
Authors
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