Istvan Gere | Searcharxiv

arXiv2021

Wealth distribution in modern societies: collected data and a master equation approach

A mean-field like stochastic evolution equation with growth and reset terms (LGGR model) is used to model wealth distribution in modern societies. The stationary solution of the model leads to an analytical form for the density function that is successful in describing the observed data for all wealth categories. In the limit of high wealth values the proposed density function has the accepted Tsallis-Pareto shape. Our results are in agreement with the predictions of an earlier approach based on a mean-field like wealth exchange process.

physics.soc-ph↗

arXiv2020

Scaling in Income Inequalities and its Dynamical Origin

We provide an analytically treatable model that describes in a unified manner income distribution for all income categories. The approach is based on a master equation with growth and reset terms. The model assumptions on the growth and reset rates are tested on an exhaustive database with incomes on individual level spanning a nine year period in the Cluj county (Romania). In agreement with our theoretical predictions we find that income distributions computed for several years collapse on a master-curve when a properly normalised income is considered. The Beta Prime distribution is appropriate to fit the collapsed data and it is shown that distributions derived for other countries are following similar trends with different fit parameters. The non-universal feature of the fit parameters suggests that for a more realistic modelling the model parameters have to be linked with specific socio-economic regulations.

q-fin.GN↗