Stochastic models with multiplicative noise for economic inequality and mobility

Abstract

In this article, we discuss a dynamical stochastic model that represents the time evolution of income distribution of a population, where the dynamics develops from an interplay of multiple economic exchanges in the presence of multiplicative noise. The model remit stretches beyond the conventional framework of a Langevin-type kinetic equation in that our model dynamics is self-consistently constrained by dynamical conservation laws emerging from population and wealth conservation. This model is numerically solved and analysed to evaluate the inequality of income in correlation to other relevant dynamical parameters like the mobility M and the total income μ. Inequality is quantified by the Gini index G. In particular, correlations between any two of the mobility index M and/or the total income μ with the Gini index G are investigated and compared with the analogous quantities resulting from an additive noise model.

Publication DOI: https://doi.org/10.1515/ijnsns-2017-0228
Divisions: College of Engineering & Physical Sciences
College of Engineering & Physical Sciences > School of Informatics and Digital Engineering > Mathematics
College of Engineering & Physical Sciences > Systems analytics research institute (SARI)
Additional Information: Maria Letizia Bertotti , Amit K Chattopadhyay and Giovanni Modanese Stochastic models with multiplicative noise for economic inequality and mobility De Gruyter | Published online: April 12, 2021 DOI: https://doi.org/10.1515/ijnsns-2017-0228
Uncontrolled Keywords: Economic inequality,Multiplicative noise,Social mobility,Stochastic model,Statistical and Nonlinear Physics,Computational Mechanics,Modelling and Simulation,Engineering (miscellaneous),Mechanics of Materials,Physics and Astronomy(all),Applied Mathematics
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Related URLs: https://www.deg ... -2017-0228/html (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2021-06-01
Published Online Date: 2021-04-12
Accepted Date: 2021-03-16
Authors: Bertotti, Maria Letizia
Chattopadhyay, Amit (ORCID Profile 0000-0001-5499-6008)
Modanese, Giovanni

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