Econophysics of Wealth Distributions

1. Front Matter

   Pages I-IX

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2. Data and analysis

   1. Front Matter

      Pages 1-1

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   2. Pareto’s Law of Income Distribution: Evidence for Germany, the United Kingdom, and the United States

      • Fabio Clementi, Mauro Gallegati

      Pages 3-14

   3. Two-class Structure of Income Distribution in the USA: Exponential Bulk and Power-law Tail

      • Victor M. Yakovenko, A. Christian Silva

      Pages 15-23

   4. Pareto-Zipf, Gibrat’s Laws, Detailed-Balance and their Breakdown

      • Yoshi Fujiwara

      Pages 24-33

   5. Empirical study and model of personal income

      • Wataru Souma, Makoto Nirei

      Pages 34-42

   6. Blockbusters, Bombs and Sleepers: The Income Distribution of Movies

      • Sitabhra Sinha, Raj Kumar Pan

      Pages 43-47

3. Models and theories

   1. Front Matter

      Pages 49-49

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   2. Emergent Statistical Wealth Distributions in Simple Monetary Exchange Models: A Critical Review

      • Thomas Lux

      Pages 51-60

   3. Lagrange Principle of Wealth Distribution

      • Jürgen Mimkes, Geoff Willis

      Pages 61-69

   4. Carnot Process of Wealth Distribution

      • Jürgen Mimkes, Yuji Aruka

      Pages 70-78

   5. Ideal-Gas Like Markets: Effect of Savings

      • Arnab Chatterjee, Bikas K Chakrabarti

      Pages 79-92

   6. Kinetic Theory Models for the Distribution of Wealth: Power Law from Overlap of Exponentials

      • Marco Patriarca, Anirban Chakraborti, Kimmo Kaski, Guido Germano

      Pages 93-110

   7. Detailed Simulation Results for Some Wealth Distribution Models in Econophysics

      • K. Bhattacharya, G. Mukherjee, S. S. Manna

      Pages 111-119

   8. Dynamics of Money and Income Distributions

      • Peter Richmond, Przemysław Repetowicz, Stefan Hutzler

      Pages 120-125

   9. Dynamic Process of Money Transfer Models

      • Yougui Wang, Ning Ding

      Pages 126-136

   10. A Stochastic Trading Model of Wealth Distribution

       • Sudhakar Yarlagadda, Arnab Das

       Pages 137-148

   11. Wealth Distribution in a Network with Correlations Between Links and Success

       • S. Risau Gusman, M. F. Laguna, J. R. Iglesias

       Pages 149-158

   12. The Monomodal, Polymodal, Equilibrium and Nonequilibrium Distribution of Money

       • Juan C. Ferrero

       Pages 159-167

   13. Relieving Poverty by Modifying Income and Wealth Distributions

       • Geoff Willis

       Pages 168-176

We all know the hard fact: neither wealth nor income is ever uniform for us all. Justified or not, they are unevenly distributed; few are rich and many are poor! Investigations for more than hundred years and the recent availability of the income distribution data in the internet (made available by the finance ministries of various countries; from the tax return data of the income tax departments) have revealed some remarkable features. Irrespective of many differences in culture, history, language and, to some extent, the economic policies followed in different countries, the income distribution is seen to fol­ low a particular universal pattern. So does the wealth distribution. Barring an initial rise in population with income (or wealth; for the destitutes), the population decreases either exponentially or in a log-normal way for the ma­ jority of 'middle income' group, and it eventually decreases following a power law (Pareto law, following Vilfredo Pareto's observation in 1896) for the rich­ est 5-10 % of the population! This seems to be an universal feature - valid for most of the countries and civilizations; may be in ancient Egypt as well! Econophysicists tried to view this as a natural law for a statistical ma- body-dynamical market system, analogous to gases, liquids or solids: classical or quantum.

• Econophysics
• Gibbs distribution
• Income distribution
• Log-normal behavior
• Pareto law
• Simulation
• Stochastic model
• calculus
• criticality
• modeling
• statistical analysis

• Theoretical Condensed Matter Physics Division and Centre for Applied Mathematics and Computational Science, Saha Institute of Nuclear Physics, Kolkata, India

  Arnab Chatterjee, Sudhakar Yarlagadda, Bikas K Chakrabarti

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