Income redistribution boosts cooperation in spatial public goods games, but the effect depends on the model of redistribution.
problem The impact of income redistribution on cooperation in spatial public goods games.
method Two models of income redistribution were used: local and global. Spatial public goods games were employed to study the evolution of cooperation.
result The cooperation level is significantly higher with local redistribution of income, but lower with global redistribution.
Model shows significant income inequality emerges from equal opportunities in a simple economy.
problem Income inequality in a simple foraging economy.
method Minimal, endogenous model of a simple foraging economy.
result Stochastic income distributions from the model match empirical data.
We present here a general framework, expressed by a system of nonlinear differential equations, suitable for the modelling of taxation and redistribution in a closed (trading market) society. This framework allows to describe the evolution of the income distribution over the population and to explain the emergence of c…
We demonstrate by mathematical analysis and systematic computer simulations that redistribution can lead to sustainable growth in a society. The human capital dynamics of each agent is described by a stochastic multiplicative process which, in the long run, leads to the destruction of individual human capital and the e…
This paper explores several types of income which have not been explored so far by authors who tackled income and wealth distribution using Statistical Physics. The main types of income we plan to analyze are income before redistribution (or gross income), income of retired people (or pensions), and income of active pe…
RIVCoin stabilizes cryptocurrency portfolios through a DAO and redistributes income.
problem Stabilizing cryptocurrency value and aligning incentives for all users.
method Decentralized DAO, diversified reserves, and income redistribution.
result Aligns incentives for wealthier users to stabilize smaller users' risk.
We analyze the data on personal income distribution from the Australian Bureau of Statistics. We compare fits of the data to the exponential, log-normal, and gamma distributions. The exponential function gives a good (albeit not perfect) description of 98% of the population in the lower part of the distribution. The lo…
Models analyze how different levels of tax evasion affect income distribution.
problem Effects of varying levels of tax evasion on income distribution.
method Microscopic models of economic interactions with a tax system and redistribution.
result Gini inequality index increases with higher evasion levels, but evasion spread does not significantly affect it.
We discuss a family of models expressed by nonlinear differential equation systems describing closed market societies in the presence of taxation and redistribution. We focus in particular on three example models obtained in correspondence to different parameter choices. We analyse the influence of the various choices …
UBI model proves financial equilibrium exists.
problem Proving existence of financial equilibrium with UBI.
method Backward stochastic differential equation (BSDE) approach.
result Equilibrium exists in UBI model.
A microscopic dynamic model is here constructed and analyzed, describing the evolution of the income distribution in the presence of taxation and redistribution in a society in which also tax evasion and auditing processes occur. The focus is on effects of enforcement regimes, characterized by different choices of the …
We investigate the effect of tax evasion on the income distribution and the inequality index of a society through a kinetic model described by a set of nonlinear ordinary differential equations. The model allows to compute the global outcome of binary and multiple microscopic interactions between individuals. When evas…
Statistical evaluations of the economic mobility of a society are more difficult than measurements of the income distribution, because they require to follow the evolution of the individuals' income for at least one or two generations. In micro-to-macro theoretical models of economic exchanges based on kinetic equation…
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…
Linear stochastic models and discretized kinetic theory are two complementary analytical techniques used for the investigation of complex systems of economic interactions. The former employ Langevin equations, with an emphasis on stock trade; the latter is based on systems of ordinary differential equations and is bett…
Wealth redistribution through Fokker-Planck equation controls preserves Gini coefficient.
problem Preserving Gini coefficient through proportional wealth tax.
method Formulating optimal redistribution as a control problem for Fokker-Planck equation.
result Progressive taxes redistribute within policy-relevant timescales.
Align-RUDDER improves reinforcement learning with few demonstrations by redistributing rewards.
problem Learning complex tasks with sparse and delayed rewards using few demonstrations.
method Align-RUDDER uses a profile model for reward redistribution based on multiple sequence alignment of demonstrations.
result Align-RUDDER outperforms competitors on complex tasks with few demonstrations.
Study shows wealth distribution tails near criticality are not universal.
problem Understanding wealth distribution tails near criticality.
method Generalized affine wealth model with nonconstant redistribution.
result Exponential tail near criticality is not universal; depends on redistribution policy.
Paper introduces a new principle for fair redistribution of insurance surplus.
problem Fair redistribution of surplus in life insurance policies.
method Introduces ISU decomposition principle based on infinitesimal sequential updates.
result Existing heuristic formulas can be replicated as ISU decompositions.
A government has to finance a risk for its population. It shares the charges among the population with a fixed scale based on economic criteria. Various organisms have to collect and to redistribute fairly the subsidies. Under these conditions, when the size of the organisms is varied, the distribution's laws of the cr…
In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected among the population according to a given criterion. Additionally, we show that…
Tax dynamics affects wealth distribution in a linearly growing socio-economic model.
problem Analyzing how tax policies impact wealth distribution in a stochastic resetting system.
method Analytical and numerical study of a system of agents with linear wealth growth, stochastic resetting, and tax redistribution.
result Optimal taxation leads to economic equality, while excessive taxation results in reverse disparity.
We propose coalescent mechanism of economic grow because of redistribution of external resources. It leads to Zipf distribution of firms over their sizes, turning to stretched exponent because of size-dependent effects, and predicts exponential distribution of income between individuals. We also present new approach to…
The paper analyzes growth rates and volatility in the 20th century.
problem Understanding the relationship between economic growth and volatility.
method Analyzes historical data of GDP per capita growth rates and volatility.
result A significant negative scale-relation between volatility and size of countries emerged after 1956.
Paper examines how income support affects retirement decisions for low-income individuals.
problem Retirement decisions of low-income individuals affected by income disaster.
method Modeling consumption/savings, investment, and retirement choices with income support.
result Optimal retirement decision depends on the level of income support provided.
New pension design reduces volatility without guarantees.
problem Pension volatility and guarantees issues.
method Split premium, invest in funds, redistribute to smooth volatility.
result Maximizes total accumulated capital at retirement.
Study examines how governance, corruption, and R&D affect economic development.
problem The impact of corruption and governance on economic development.
method General equilibrium model with heterogeneous agents and a government, including corruption as a fraction of tax revenues.
result Redistribution and innovation-led strategies can mitigate the negative effects of corruption on economic development.
The aim of this work is to establish the personal income distribution from the elementary constituents of a free market; products of a representative good and agents forming the economic network. The economy is treated as a self-organized system. Based on the idea that the dynamics of an economy is governed by slow mod…
Herein, we applied statistical physics to study incomes of three (low-, medium- and high-income) society classes instead of the two (low- and medium-income)classes studied so far. In the frame of the threshold nonlinear Langevin dynamics and its threshold Fokker-Planck counterpart, we derived a unified formula for desc…
Study on Brazilian income distribution using PNAD data.
problem Analyzing income inequality in Brazil.
method Used semi-empirical model to reconcile Pareto and Boltzmann-Gibbs distributions, calculated multiple inequality measures.
result Decreasing income inequality over 2001-2014 period, especially for historically disadvantaged groups.
Paper proposes RRD to learn proxy rewards for sparse delayed rewards in episodic reinforcement learning.
problem Learning from sparse and delayed rewards in reinforcement learning.
method Randomized Return Decomposition (RRD) algorithm to redistribute rewards.
result Substantial improvement over baseline algorithms in experiments.
We found a unified formula for description of the household incomes of all society classes, for instance, for the European Union in years 2005-2010. The formula is more general than well known that of Yakovenko et al. because, it satisfactorily describes not only the household incomes of low- and medium-income society …
Analyzes how many people can receive stable income in a pooled annuity fund.
problem Quantifying the trade-off between income stability and the number of members in a pooled annuity fund.
method Investment returns held constant, systematic longevity risk omitted. Derived an analytical expression for income stability.
result The number of fund members who receive stable income is independent of the mortality model.
Capital usually leads to income, and income is more accurately and easily measured. Thus we summarize income distributions in USA, Germany, etc.
Developing a scientific understanding of cities in a fast urbanizing world is essential for planning sustainable urban systems. Recently, it was shown that income and wealth creation follow increasing returns, scaling superlinearly with city size. We study scaling of per capita incomes for separate census defined incom…
Study shows income inequality increases with city size, affecting only the wealthiest deciles.
problem Understanding income inequality in urban areas.
method Urban scaling analysis of total income scaling in population percentiles.
result Income in the poorest decile does not increase with city size, while the wealthiest deciles show superlinear scaling.
This study analyzes inequality in Romanian income distribution using advanced statistical methods.
problem Characterizing inequality in Romania's income distribution.
method Advanced statistical techniques, specifically Theil index decomposition.
result Salient factors contributing to income inequality in Romania identified.
We found a unified formula for description of the household incomes of all society classes, for instance, of those of the European Union in year 2007. This formula is a stationary solution of the threshold Fokker-Planck equation (derived from the threshold nonlinear Langevin one). The formula is more general than the w…
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…
We investigate the Japanese personal income distribution in the high income range over the 112 years 1887-1998, and that in the middle income range over the 44 years 1955-98. It is observed that the distribution pattern of the lognormal with power law tail is the universal structure. However the indexes specifying the …
Study finds Pareto distribution for wealth and income of Norway's richest individuals.
problem Analyzing wealth and income distribution of Norway's richest individuals.
method Empirical data from Norwegian tax office, using Pareto law.
result Robust mean Pareto exponents for income and wealth are approximately 2.3 and 1.5 respectively.
We prove that the refined approach -- our extension of the Yakovenko et al. formalism -- is universal in the sense that it describes well both household incomes in the European Union and the individual incomes in the United States for social classes of any income. This formalism allowed the study of the impact of the r…
We analyze three sets of income data: the US Panel Study of Income Dynamics PSID), the British Household Panel Survey (BHPS), and the German Socio-Economic Panel (GSOEP). It is shown that the empirical income distribution is consistent with a two-parameter lognormal function for the low-middle income group (97%-99% of …
Optimal control strategies modify wealth inequality variance.
problem Minimizing wealth inequality variance in a market economy.
method Kinetic models and model predictive control for wealth dynamics.
result Control modifies Pareto index of wealth distribution.
The results of R^2 dynamical random surface model (2-dimensional quantum gravity with a R2 term) are applied to explain the personal income distribution. A scale invariance exists if there is not the R2 term in the action. The R^2 term provides a typical scale and breaks the scale invariance explicitly in the low…
In this article we present an alternative model for the distribution of household incomes in the United States. We provide arguments from two differing perspectives which both yield the proposed income distribution curve, and then fit this curve to empirical data on household income distribution obtained from the Unite…
Unified model explains income inequality across countries.
problem Understanding and explaining income inequality across different countries.
method Analytical model based on a master equation with growth and reset terms, tested on real data.
result Income distributions collapse on a master-curve when normalized, suggesting a universal pattern.
Algorithm calculates incomes for Chilean pass-through entities.
problem Computing incomes for Chilean pass-through entities with complex networks.
method Markov chains and decomposition algorithm.
result There is a unique way to distribute incomes to taxpayers.