A locally-built, LLM-digested index of recent arXiv papers in quant finance, geometry/topology, and statistical ML — keyword search served straight from SQLite on this machine.
Analyzes regional wealth inequalities in Italy using various statistical methods.
Financial investment returns lead to growing wealth inequality.
Study examines how taxes affect wealth inequality in economic models.
Unbiased wealth exchanges always lead to inequality.
Inequality persists as wealth concentrates in a few agents.
Model shows wealth inequality in US cannot equilibrate, with reallocation rates becoming negative after 1980.
Model shows how economic interactions and regulation affect wealth inequality.
Quant hedge funds boost inequality by trading equities.
Optimal control strategies modify wealth inequality variance.
New tontine model with transaction costs for retirees.
The inequality of wealth distribution is a universal phenomenon in the civilized nations, and it is often imputed to the Matthew effect, that is, the rich get richer and the poor get poorer. Some philosophers unjustified this phenomenon and tried to put the human civilization upon the evenness of wealth. Noticing the f…
Many models of market dynamics make use of the idea of wealth exchanges among economic agents. A simple analogy compares the wealth in a society with the energy in a physical system, and the trade between agents to the energy exchange between molecules during collisions. However, while in physical systems the equiparti…
The Generalized Beta Prime distribution explains wealth and income distributions.
The study applies wealth thermalization hypothesis to social networks and explains inequality.
Model shows significant income inequality emerges from equal opportunities in a simple economy.
In the last decade, a large body of literature has been developed to explain the universal features of inequality in terms of income and wealth. By now, it is established that the distributions of income and wealth in various economies show a number of statistical regularities. There are several models to explain such …
Agent-based model for wealth distribution with negative wealth.
Income and wealth distribution affect stability of a society to a large extent and high inequality affects it negatively. Moreover, in the case of developed countries, recently has been proven that inequality is closely related to all negative phenomena affecting society. So far, Econophysics papers tried to analyse in…
A simplified model shows how wealth distribution can be derived from random exchanges.
Physicists study socio-economic inequalities using atom-like models.
We discuss the equivalence between kinetic wealth-exchange models, in which agents exchange wealth during trades, and mechanical models of particles, exchanging energy during collisions. The universality of the underlying dynamics is shown both through a variational approach based on the minimization of the Boltzmann e…
We investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree distribution of the underlying network and in particular we verify that scale free netw…
Study finds Pareto distribution for wealth and income of Norway's richest individuals.
New economic models tackle income and wealth distribution issues.
In this paper, we study the inequality indices for some models of wealth exchange. We calculated Gini index and newly introduced k-index and compare the results with reported empirical data available for different countries. We have found lower and upper bounds for the indices and discuss the efficiencies of the models…
We study the finite-size effects in some scaling systems, and show that the finite number of agents N leads to a cut-off in the upper value of the Pareto law for the relative individual wealth. The exponent of the Pareto law obtained in stochastic multiplicative market models is crucially affected by the fact that …
Almost universally, wealth is not distributed uniformly within societies or economies. Even though wealth data have been collected in various forms for centuries, the origins for the observed wealth-disparity and social inequality are not yet fully understood. Especially the impact and connections of human behavior on …
The paper extends the isoperimetric inequality to disconnected regions.
Law of iterated logarithm derived from betting strategy.
New models reduce regional inequality by adjusting exchange range and asset distribution bias.
Investigates consumption and investment strategies with preference for liquid assets.
We propose some kinetic models of wealth exchange and investigate their behavior on directed networks though numerical simulations. We observe that network topology and directedness yields a variety of interesting features in these models. The nature of asset distribution in such directed networks show varied results, …
We study the model of interacting agents proposed by Chatterjee et al that allows agents to both save and exchange wealth. Closed equations for the wealth distribution are developed using a mean field approximation. We show that when all agents have the same fixed savings propensity, subject to certain well defined app…
This paper analyzes the equilibrium distribution of wealth in an economy where firms' productivities are subject to idiosyncratic shocks, returns on factors are determined in competitive markets, dynasties have linear consumption functions and government imposes taxes on capital and labour incomes and equally redistrib…
A new model connects stochastic effects to economic inequality.
Study on optimal portfolio selection with varying borrowing and saving rates in continuous-time markets.
Study shows household inequality accounts for 30% of total global income inequality.
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 wea…
Study shows relationship between Gini and Kolkata inequality indices.
We introduce and discuss a nonlinear kinetic equation of Boltzmann type which describes the influence of knowledge in the evolution of wealth in a system of agents which interact through the binary trades introduced in Cordier, Pareschi, Toscani, J. Stat. Phys. 2005. The trades, which include both saving propensity and…
We analyze a conservative market model for the competition among economic agents in a close society. A minimum dynamics ensures that the poorest agent has a chance to improve its economic welfare. After a transient, the system self-organizes into a critical state where the wealth distribution have a minimum threshold, …
European prosperity linked to specific cultural and social factors.
Many models of market dynamics make use of the idea of conservative wealth exchanges among economic agents. A few years ago an exchange model using extremal dynamics was developed and a very interesting result was obtained: a self-generated minimum wealth or poverty line. On the other hand, the wealth distribution exhi…
We introduce a minimal agent-based model to qualitatively conceptualize the allocation of limited wealth among more abundant opportunities. We study the interplay of power, satisfaction and frustration in distribution, concentration, and inequality of wealth. Our framework allows us to compare subjective measures of fr…
This paper deals with numerical solutions of maximizing expected utility from terminal wealth under a non-bankruptcy constraint. The wealth process is subject to shocks produced by a general marked point process. The problem of the agent is to derive the optimal insurance strategy which allows "lowering" the level of t…
In a recent paper in this journal [J. Stat. Mech. (2009) P02037] we proposed a new, physically motivated, distribution function for modeling individual incomes having its roots in the framework of the k-generalized statistical mechanics. The performance of the k-generalized distribution was checked against real data on…
In this paper we extend the series of our studies on the properties of an interacting particle model for market microstructure. In our earlier work we defined a Markov process on the majority opinion of the agents, obtained the transition probabilities and analyzed the martingale properties of the ensuing wealth proces…
Spectral portfolio theory links neural networks to wealth dynamics via SGD weight matrices.