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Taxes in a simple wealth distribution model by inelastically scattering particles

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  • Sebastian D. Guala

Abstract

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected among the population according to a given criterion. Additionally, we show that different optimal levels of taxes may exist depending on the redistribution criterion.

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  • Sebastian D. Guala, 2008. "Taxes in a simple wealth distribution model by inelastically scattering particles," Papers 0807.4484, arXiv.org.
    • Handle: RePEc:arx:papers:0807.4484
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    1. Pianegonda, S & Iglesias, J.R & Abramson, G & Vega, J.L, 2003. "Wealth redistribution with conservative exchanges," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 322(C), pages 667-675.
    2. Sinha, Sitabhra, 2006. "Evidence for power-law tail of the wealth distribution in India," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 359(C), pages 555-562.
    3. Pianegonda, S. & Iglesias, J.R., 2004. "Inequalities of wealth distribution in a conservative economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 342(1), pages 193-199.
    4. Iglesias, J.R. & Gonçalves, S. & Pianegonda, S. & Vega, J.L. & Abramson, G., 2003. "Wealth redistribution in our small world," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 327(1), pages 12-17.
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