Inequality measures in kinetic exchange models of wealth distributions

TL;DR

This paper analyzes inequality measures in kinetic exchange models of wealth distribution, comparing theoretical indices with empirical data, and providing bounds and exact calculations for specific distributions.

Contribution

It introduces bounds for inequality indices in wealth exchange models and computes exact values for Gamma distributions, enhancing understanding of model efficiencies.

Findings

Gini and k-indices compared with empirical data

Bounds established for inequality indices

Exact calculations for Gamma distributions

Abstract

In this paper, we study the inequality indices for some models of wealth exchange. We calculated Gini index and newly introduced k-index and compare the results with reported empirical data available for different countries. We have found lower and upper bounds for the indices and discuss the efficiencies of the models. Some exact analytical calculations are given for a few cases. We also exactly compute the quantities for Gamma and double Gamma distributions.