Work

Small-World Effects in Wealth Distribution

Year: 2001

Type: preprint

Abstract: We construct a model of wealth distribution, based on an interactive multiplicative stochastic process on static complex networks. Through numerical simulations we show that a decrease in the number of links discourages equality in wealth distribution, while the rewiring of links in small-world networks encourages it. Inequal distributions obey log-normal distributions, which are produced by wealth clustering. The rewiring of links breaks the wealth clustering and makes wealth obey the mean field type (power law) distributions. A mechanism that explains the appearance of log-normal distributions with a power law tail is proposed.

Source: arXiv (Cornell University)

DOI: 10.48550/arxiv.cond-mat/0108482

Authors: Souma, Wataru, Fujiwara, Yoshi, Aoyama, Hideaki

Institutions: Advanced Telecommunications Research Institute International, Kyoto University, National Institute of Information and Communications Technology

Language: English

Topic: Complex Systems and Time Series Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: green

OpenAlex ID: W1554792193

Cites: 5

Cited by: 44

Related to: 10