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Wealth distribution and the Lorenz curve: a finitary approach

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  • Enrico Scalas
  • Tijana Radivojević
  • Ubaldo Garibaldi

Abstract

We use three stochastic games for the wealth of economic agents which may be at work in a real economy and we derive their statistical equilibrium distributions. Based on a heuristic argument, we assume that the expected observed wealth distribution is a mixture of these three distributions. We compare the Lorenz curves obtained from this conjecture with the empirical curves for a set of countries. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Enrico Scalas & Tijana Radivojević & Ubaldo Garibaldi, 2015. "Wealth distribution and the Lorenz curve: a finitary approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(1), pages 79-89, April.
    • Handle: RePEc:spr:jeicoo:v:10:y:2015:i:1:p:79-89
    DOI: 10.1007/s11403-014-0136-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Wealth distribution; Lorenz curve; Markov chains ; Probabilistic methods; C80; D31;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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