Volatility mixing in a networked wealth model neutralizes group-wise exponents and lowers the aggregate tail exponent, enabling a condensation transition across γ_c=2.
Small-World Effects in Wealth Distribution
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abstract
We construct a model of wealth distribution, based on an interactive multiplicative stochastic process on static complex networks. Through numerical simulations we show that a decrease in the number of links discourages equality in wealth distribution, while the rewiring of links in small-world networks encourages it. Inequal distributions obey log-normal distributions, which are produced by wealth clustering. The rewiring of links breaks the wealth clustering and makes wealth obey the mean field type (power law) distributions. A mechanism that explains the appearance of log-normal distributions with a power law tail is proposed.
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cond-mat.stat-mech 2verdicts
UNVERDICTED 2representative citing papers
A minimal model with growth-rate assortativity A and regional concentration R explains bimodality and regional correlations in global income distributions via spatial segregation of growth rates.
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Role of volatility mixing in wealth condensation transition
Volatility mixing in a networked wealth model neutralizes group-wise exponents and lowers the aggregate tail exponent, enabling a condensation transition across γ_c=2.
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Anomaly, class division, and decoupling in income dynamics
A minimal model with growth-rate assortativity A and regional concentration R explains bimodality and regional correlations in global income distributions via spatial segregation of growth rates.