Publikation:

International and domestic trading and wealth distribution

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cofe_dp08_02.pdf
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Datum

2008

Autor:innen

Düring, Bertram
Toscani, Giuseppe

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Open Access-Veröffentlichung
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Working Paper/Technical Report
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Published

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Zusammenfassung

We introduce and discuss a kinetic model for wealth distribution in a simple market economy which is built of a number of countries or social groups. Our approach is based on the model with risky investments introduced by Cordier, Pareschi and one of the authors in [13] and borrows ideas from the kinetic theory of mixtures of rarefied gases. Wealth is exchanged by individuals inside these countries (domestic trade) as well as in between different countries (international trade). Under a suitable scaling we derive a system of Fokker-Planck type equations and discuss its extension to a two-dimensional model with distributed trading propensity. Theoretical and numerical results for two groups show that the wealth distribution develops a bimodal (and in general, a polymodal) shape.

Zusammenfassung in einer weiteren Sprache

Fachgebiet (DDC)
330 Wirtschaft

Schlagwörter

Wealth and income distributions, Boltzmann equation, mixture

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ISO 690DÜRING, Bertram, Giuseppe TOSCANI, 2008. International and domestic trading and wealth distribution
BibTex
@techreport{During2008Inter-12171,
  year={2008},
  series={CoFE-Diskussionspapiere / Zentrum für Finanzen und Ökonometrie},
  title={International and domestic trading and wealth distribution},
  number={2008/02},
  author={Düring, Bertram and Toscani, Giuseppe}
}
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