A recent application of the kinetic theory for many particle systems is the description of the redistribution of wealth among trading agents in a simple market economy. This paper provides an analytical investigation of the particular model with quenched saving propensities, which has been introduced by Chakrabarti, Chatterjee and Manna. We prove uniqueness and dynamical stability of the stationary solution to the underlying Boltzmann equation, and provide estimates on the rate of equilibration. As one main result, we obtain that realistic steady wealth distributions with Pareto tail are only algebraically stable in this framework.
Analysis of a model for wealth redistribution
MATTHES, DANIEL;TOSCANI, GIUSEPPE
2008-01-01
Abstract
A recent application of the kinetic theory for many particle systems is the description of the redistribution of wealth among trading agents in a simple market economy. This paper provides an analytical investigation of the particular model with quenched saving propensities, which has been introduced by Chakrabarti, Chatterjee and Manna. We prove uniqueness and dynamical stability of the stationary solution to the underlying Boltzmann equation, and provide estimates on the rate of equilibration. As one main result, we obtain that realistic steady wealth distributions with Pareto tail are only algebraically stable in this framework.File in questo prodotto:
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