A simple dynamical model leading to Pareto wealth distribution and stability
Ricardo P\'erez-Marco
TL;DR
This paper introduces a straightforward dynamical model of wealth evolution that produces Pareto-type distributions, demonstrating their stability over time, aligning with Pareto's original conjecture.
Contribution
The paper presents a novel, simple dynamical model that generates Pareto wealth distributions and proves their stability.
Findings
Wealth distributions follow Pareto law.
Distributions are dynamically stable.
Model aligns with Pareto's conjecture.
Abstract
We propose a simple dynamical model of wealth evolution. The invariant distributions are of Pareto type and are dynamically stable as conjectured by Pareto.
Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.
Taxonomy
TopicsEconomic theories and models · Complex Systems and Time Series Analysis · Stochastic processes and financial applications