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Revisiting r>g—The asymptotic dynamics of wealth inequality

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  • Berman, Yonatan
  • Shapira, Yoash

Abstract

Studying the underlying mechanisms of wealth inequality dynamics is essential for its understanding and for policy aiming to regulate its level. We apply a heterogeneous non-interacting agent-based modeling approach, solved using iterated maps to model the dynamics of wealth inequality based on 3 parameters—the economic output growth rate g, the capital value change rate a and the personal savings rate s and show that for ag, the wealth distribution constantly becomes more and more inegalitarian. We also show that when a

Suggested Citation

  • Berman, Yonatan & Shapira, Yoash, 2017. "Revisiting r>g—The asymptotic dynamics of wealth inequality," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 467(C), pages 562-572.
    • Handle: RePEc:eee:phsmap:v:467:y:2017:i:c:p:562-572
    DOI: 10.1016/j.physa.2016.10.035
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