Inequality reversal: effects of the savings propensity and correlated returns

Chakrabarti, Anindya S. ; Chakrabarti, Bikas K. (2010) Inequality reversal: effects of the savings propensity and correlated returns Physica A: Statistical Mechanics and its Applications, 389 (17). pp. 3572-3579. ISSN 0378-4371

Full text not available from this repository.

Official URL: http://linkinghub.elsevier.com/retrieve/pii/S03784...

Related URL: http://dx.doi.org/10.1016/j.physa.2010.04.038

Abstract

In the last decade, a large body of literature has been developed to explain the universal features of inequality in terms of income and wealth. By now, it is established that the distributions of income and wealth in various economies show a number of statistical regularities. There are several models to explain such static features of inequality in a unifying framework, and the kinetic exchange models in particular provide one such framework. Here we focus on the dynamic features of inequality. In the process of development and growth, inequality in an economy in terms of income and wealth follows a particular pattern of rising in the initial stage followed by an eventual fall. This inverted U-shaped curve is known as the Kuznets Curve. We examine the possibilities of such behavior of an economy in the context of a generalized kinetic exchange model. It is shown that under some specific conditions, our model economy indeed shows inequality reversal.

Item Type:Article
Source:Copyright of this article belongs to Elsevier Science.
Keywords:Inequality; Correlated Returns; Kuznets Curve; Kinetic Exchange Models
ID Code:44805
Deposited On:23 Jun 2011 08:00
Last Modified:23 Jun 2011 08:00

Repository Staff Only: item control page