The Dynamics of Wealth Inequality and the Effect of Income Distribution.

ABSTRACT: The rapid increase of wealth inequality in the past few decades is one of the most disturbing social and economic issues of our time. Studying its origin and underlying mechanisms is essential for policy aiming to control and even reverse this trend. In that context, controlling the distribution of income, using income tax or other macroeconomic policy instruments, is generally perceived as effective for regulating the wealth distribution. We provide a theoretical tool, based on the realistic modeling of wealth inequality dynamics, to describe the effects of personal savings and income distribution on wealth inequality. Our theoretical approach incorporates coupled equations, solved using iterated maps to model the dynamics of wealth and income inequality. Notably, using the appropriate hi

SUBMITTER: Berman Y 

PROVIDER: S-EPMC4841595 | biostudies-literature | 2016

REPOSITORIES: biostudies-literature