Comment on "Wealth condensation in Pareto macroeconomies".
In a recent study of the Pareto macroeconomy [Phys. Rev. E 65, 026102 (2002)], a surprising deviation to the power law distribution of the large wealths is reported. We comment that such a "corruption" phenomenon can be reproduced in a much simplified framework. The corruption disappears when the small wealths are further included in a mean-field treatment. The constraint of the total-wealth conservation leads to a cutoff in the power-law tail, in contrast to the prominent enhancement reported previously.
Huang
Ding-Wei
DW
Department of Physics, Chung Yuan Christian University, Chung-li, Taiwan.