Quantitative description of realistic wealth distributions by kinetic trading models.
Data on wealth distributions in trading markets show a power law behavior x(-)(1+alpha) at the high end, where, in general, alpha is greater than 1 (Pareto's law). Models based on kinetic theory, where a set of interacting agents trade money, yield power law tails if agents are assigned a saving propensity. In this paper we are solving the inverse problem, that is, in finding the saving propensity distribution which yields a given wealth distribution for all wealth ranges. This is done explicitly for two recently published and comprehensive wealth datasets.
Lammoglia
Nelson
N
Universidad de los Andes, Bogotá, Colombia, CeiBA-Complejidad.
Muñoz
Víctor
V
Rogan
José
J
Toledo
Benjamín
B
Zarama
Roberto
R
Valdivia
Juan Alejandro
JA