Talk On Wealth Distribution

The Truth of Inequality Abhijit Kar Gupta

Panskura Banamali College

The Truth is:

Wealth is unequally shared by us. Thus there are distributions of Wealth.   

What kind of distributions? How the distributions emerge? Why interesting?

Pareto’s Law: 80-20 Rule

High end of the distribution is a power law:

P( w) ∝ w

− (1+α )

Application of Statistical Physics Then, Boltzmann says: “This opens a broad perspective if we do not only think of mechanical objects. Let’s consider to apply this method to the statistics of living beings, society, sociology and so forth.”

So we consider, Economy is a big statistical system with millions of participating agents. Money = Energy Av. Money = Temperature

Model

mi → mi′ = mi + ∆m m j → m′j = m j − ∆m Zero Sum exchange Zero intelligence

In case your interest lingers…

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Abhijit Kar Gupta, Relaxation in Wealth Exchange Models, Physica A (in print, 2008); arXiv:0806.3813

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Abhijit Kar Gupta, Models of wealth distributions – a perspective, a chapter in a book: Econophysics and Sociophysics: trends and perspectives, eds. B.K. Chakrabarti et al., Wiley-VCH, Berlin (2006); arXiv.org, Physics/0604161,

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Abhijit Kar Gupta, Role of Selective Interaction in Wealth Distribution, Commun. Comp. Phys. (2006); arXiv.org, Physics/0509172; ICTP preprint IC/2005/051.

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Abhijit Kar Gupta, Money Exchange model and a general Outlook, Physica A, 359, 634 (2006); arXiv.org, Physics/0505115.

Econophysics Forum: www.unifr.ch/econophysics/