The Effects of Taxes on Wealth Inequality in Artificial Chemistry Models of Economic Activity

TL;DR

This paper explores how various tax measures influence wealth inequality within artificial chemistry models of economic activity, aiming to identify effective strategies for reducing inequality in simulated economies.

Contribution

It introduces a systematic analysis of tax effects on wealth distribution in kinetic exchange models, providing insights into inequality mitigation strategies.

Findings

Certain tax measures effectively reduce wealth inequality in models.

Model scenarios show potential policy implications for real economies.

Artificial chemistry models can simulate economic inequality dynamics.

Abstract

We consider a number of Artificial Chemistry models for economic activity and what consequences they have for the formation of economic inequality. We are particularly interested in what tax measures are effective in dampening economic inequality. By starting from well-known kinetic exchange models, we examine different scenarios for reducing the tendency of economic activity models to form unequal wealth distribution in equilibrium.