Continuum and thermodynamic limits for a wealth-distribution model

Duering, Bertram, Georgiou, Nicos, Merino Aceituno, Sara and Scalas, Enrico (2020) Continuum and thermodynamic limits for a wealth-distribution model. In: Aoyama, Hideaki, Aruka, Yuji and Yoshikawa, Hiroshi (eds.) Complexity, Heterogeneity, and the Methods of Statistical Physics in Economics: Essays in Memory of Masanao Aoki. Evolutionary Economics and Social Complexity Science . Springer. ISBN 9789811548055 (Accepted)

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We discuss a simple random exchange model for the distribution of wealth. There are N agents, each one endowed with a fraction of the total wealth; indebtedness is not possible, so wealth fractions are positive random variables. At each step, two agent are randomly selected, their wealths are first merged and then randomly split into two parts. We start from a discrete state space - discrete time version of this model and, under suitable scaling, we present its functional convergence to a continuous space - discrete time model. Then, we discuss how a continuous-time version of the one-point marginal Markov chain functionally converges to a kinetic equation of Boltzmann type. Solutions to this equation are presented and they coincide with the appropriate limits of the invariant measure for the marginal Markov chain. In this way, in this simple case, we complete Boltzmann’s program of deriving kinetic equations from random dynamics.

Item Type: Book Section
Schools and Departments: School of Mathematical and Physical Sciences > Mathematics
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 20 Apr 2020 11:13
Last Modified: 12 May 2020 15:28

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