title: Wealth condensation in pareto macroeconomies.
abstract: We discuss a Pareto macroeconomy (a) in a closed system with fixed total wealth and (b) in an open system with average mean wealth, and compare our results to a similar analysis in a super-open system (c) with unbounded wealth [J.-P. Bouchaud and M. Mézard, Physica A 282, 536 (2000)]. Wealth condensation takes place in the social phase for closed and open economies, while it occurs in the liberal phase for super-open economies. In the first two cases, the condensation is related to a mechanism known from the balls-in-boxes model, while in the last case, to the nonintegrable tails of the Pareto distribution. For a closed macroeconomy in the social phase, we point to the emergence of a "corruption" phenomenon: a sizeable fraction of the total wealth is always amassed by a single individual.
authors.affiliation: M. Smoluchowski Institute of Physics, Jagellonian University, Cracow, Poland.
authors.forename: Z
authors.initials: Z
authors.lastname: Burda
authors.forename: D
authors.initials: D
authors.lastname: Johnston
authors.forename: J
authors.initials: J
authors.lastname: Jurkiewicz
authors.forename: M
authors.initials: M
authors.lastname: Kamiński
authors.forename: M A
authors.initials: MA
authors.lastname: Nowak
authors.forename: G
authors.initials: G
authors.lastname: Papp
authors.forename: I
authors.initials: I
authors.lastname: Zahed