Laser Welfare: First Steps in Econodynamic Engineering

TL;DR

This paper explores econodynamic engineering by drawing parallels between physical energy distributions and income, proposing a novel welfare scheme and an experiment to test its effectiveness.

Contribution

It introduces a new approach to economic modeling inspired by physical systems and proposes a detailed welfare scheme and an experimental test for its validation.

Findings

Potential for more efficient welfare distribution

Analogies between energy and income distributions

Proposed experiment to validate econodynamic models

Abstract

The paper starts with a brief review of present understanding of income distributions; especially with regard to recent work in the field of econophysics that draws parallels between income, wealth and energy distributions. Examples of alternative energy distributions found in physical systems are discussed, and how they could be used to construct economic models that might allow alternative overall distributions of wealth and income in society. These ideas are further expanded and a more detailed scheme for welfare assistance is proposed that might be used to improve the incomes of the poorest in a more efficient way than traditional welfare schemes. Finally, and unusually for a paper on economics; an experiment is proposed that could be used to either support or disprove the ideas discussed in the rest of the paper.