Wealth condensation in pareto macroeconomies.
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.
Burda
Z
Z
M. Smoluchowski Institute of Physics, Jagellonian University, Cracow, Poland.
Johnston
D
D
Jurkiewicz
J
J
Kamiński
M
M
Nowak
M A
MA
Papp
G
G
Zahed
I
I