A poor agent and subsidy: an investigation through CCM model

TL;DR

This paper investigates the impact of subsidies on low-wealth agents in a modified CCM kinetic wealth exchange model, analyzing their dynamics through a walk analogy in Gain-Loss Space and comparing single versus repeated subsidies.

Contribution

It introduces a model for studying subsidies on poor agents within a kinetic wealth exchange framework and compares the effects of one-time versus repeated subsidies.

Findings

Single subsidy leads to more positive drift in agent wealth dynamics.

Repeated subsidies do not significantly improve the walk's positivity compared to a single subsidy.

Correlations and other quantities reveal nuanced effects of subsidy frequency on wealth exchange behavior.

Abstract

In this work, the dynamics of agents below a \textit{threshold line} in some modified CCM type kinetic wealth exchange models are studied. These agents are eligible for subsidy as can be seen in any real economy. An interaction is prohibited if both of the interacting agents' wealth fall below the threshold line. A walk for such agents can be conceived in the abstract Gain-Loss Space(GLS) and is macroscopically compared to a lazy walk. The effect of giving subsidy once to such agents is checked over giving repeated subsidy from the point of view of the walk in GLS. It is seen that the walk has more positive drift if the subsidy is given once. The correlations and other interesting quantities are studied.