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December 2008 International and domestic trading and wealth distribution
B. During, G. Toscani
Commun. Math. Sci. 6(4): 1043-1058 (December 2008).

Abstract

We introduce and discuss a kinetic model for wealth distribution in a simple market economy which is built of a number of countries or social groups. Our approach is based on the model with risky investments introduced by Cordier, Pareschi, and Toscani in On a kinetic model for a simple market economy, and borrows ideas from the kinetic theory of mixtures of rarefied gases. Wealth is exchanged by individuals inside these countries (domestic trade) as well as in between different countries (international trade). Under a suitable scaling we derive a system of Fokker-Planck type equations and discuss its extension to a two-dimensional model with distributed trading propensity. Theoretical and numerical results for two groups show that the wealth distribution develops a bimodal (and in general, a polymodal) shape.

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B. During. G. Toscani. "International and domestic trading and wealth distribution." Commun. Math. Sci. 6 (4) 1043 - 1058, December 2008.

Information

Published: December 2008
First available in Project Euclid: 18 December 2008

zbMATH: 1158.91430
MathSciNet: MR2511705

Subjects:
Primary: 35B40 , 82C40 , 91B60

Keywords: Boltzmann equation , mixture , Wealth and income distributions

Rights: Copyright © 2008 International Press of Boston

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Vol.6 • No. 4 • December 2008
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