Wealth disparities and economic flow: Assessment using an asset exchange model with the surplus stock of the wealthy.

ABSTRACT: How can we limit wealth disparities while stimulating economic flows in sustainable societies? To examine the link between these concepts, we propose an econophysics asset exchange model with the surplus stock of the wealthy. The wealthy are one of the two exchange agents and have more assets than the poor. Our simulation model converts the surplus contribution rate of the wealthy to a new variable parameter alongside the saving rate and introduces the total exchange (flow) and rank correlation coefficient (metabolism) as new evaluation indexes, adding to the Gini index (disparities), thereby assessing both wealth distribution and the relationships among the disparities, flow, and metabolism. We show that these result in a gamma-like wealth distribution, and our model reveals a trade-off b

SUBMITTER: Kato T 

PROVIDER: S-EPMC8568155 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature