Wealth condensation in pareto macroeconomics

Z. Burda, D. Johnston, J. Jurkiewicz, M. Kamiński, M. A. Nowak, G. Papp, I. Zahed

Research output: Contribution to journalArticle

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 economics. 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. ©20Q2 The American Physical Society.

Original languageEnglish
Article number026102
Pages (from-to)026102/1-026102/4
JournalPhysical Review E
Volume65
Issue number2
DOIs
Publication statusPublished - Feb 2002

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Burda, Z., Johnston, D., Jurkiewicz, J., Kamiński, M., Nowak, M. A., Papp, G., & Zahed, I. (2002). Wealth condensation in pareto macroeconomics. Physical Review E, 65(2), 026102/1-026102/4. [026102]. https://doi.org/10.1103/PhysRevE.65.026102
Burda, Z. ; Johnston, D. ; Jurkiewicz, J. ; Kamiński, M. ; Nowak, M. A. ; Papp, G. ; Zahed, I. / Wealth condensation in pareto macroeconomics. In: Physical Review E. 2002 ; Vol. 65, No. 2. pp. 026102/1-026102/4.
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Burda, Z, Johnston, D, Jurkiewicz, J, Kamiński, M, Nowak, MA, Papp, G & Zahed, I 2002, 'Wealth condensation in pareto macroeconomics', Physical Review E, vol. 65, no. 2, 026102, pp. 026102/1-026102/4. https://doi.org/10.1103/PhysRevE.65.026102

Wealth condensation in pareto macroeconomics. / Burda, Z.; Johnston, D.; Jurkiewicz, J.; Kamiński, M.; Nowak, M. A.; Papp, G.; Zahed, I.

In: Physical Review E, Vol. 65, No. 2, 026102, 02.2002, p. 026102/1-026102/4.

Research output: Contribution to journalArticle

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Burda Z, Johnston D, Jurkiewicz J, Kamiński M, Nowak MA, Papp G et al. Wealth condensation in pareto macroeconomics. Physical Review E. 2002 Feb;65(2):026102/1-026102/4. 026102. https://doi.org/10.1103/PhysRevE.65.026102