scholarly journals Analysis of Solidarity Effect for Entropy, Pareto, and Gini Indices on Two-Class Society Using Kinetic Wealth Exchange Model

Entropy ◽  
2020 ◽  
Vol 22 (4) ◽  
pp. 386 ◽  
Author(s):  
Gyuchang Lim ◽  
Seungsik Min
Keyword(s):  
Wealth Distribution ◽  
Lower Class ◽  
Bimodal Distribution ◽  
Rational Approach ◽  
Entropy Measure ◽  
Gini Coefficients ◽  
Distribution Of Wealth ◽  
Class Society ◽  
Pareto Exponent ◽  
The Rich

It is well known that two different underlying dynamics lead to different patterns of income/wealth distribution such as the Boltzmann–Gibbs form for the lower end and the Pareto-like power-law form for the higher-end. The Boltzmann–Gibbs distribution is naturally derived from maximizing the entropy of random interactions among agents, whereas the Pareto distribution requires a rational approach of economics dependent on the wealth level. More interestingly, the Pareto regime is very dynamic, whereas the Boltzmann–Gibbs regime is stable over time. Also, there are some cases in which the distributions of income/wealth are bimodal or polymodal. In order to incorporate the dynamic aspects of the Pareto regime and the polymodal forms of income/wealth distribution into one stochastic model, we present a modified agent-based model based on classical kinetic wealth exchange models. First, we adopt a simple two-class society consisting of the rich and the poor where the agents in the same class engage in random exchanges while the agents in the different classes perform a wealth-dependent winner-takes-all trading. This modification leads the system to an extreme polarized society with preserving the Pareto exponent. Second, we incorporate a solidarity formation among agents belonging to the lower class in our model, in order to confront a super-rich agent. This modification leads the system to a drastic bimodal distribution of wealth with a varying Pareto exponent over varying the solidarity parameter, that is, the Pareto-regime becomes narrower and the Pareto exponent gets larger as the solidarity parameter increases. We argue that the solidarity formation is the key ingredient in the varying Pareto exponent and the polymodal distribution. Lastly, we take two approaches to evaluate the level of inequality of wealth such as Gini coefficients and the entropy measure. According to the numerical results, the increasing solidarity parameter leads to a decreasing Gini coefficient not linearly but nonlinearly, whereas the entropy measure is robust over varying solidarity parameters, implying that there is a trade-off between the intermediate party and the high end.

scholarly journals Wealth Distribution in the Bitcoin Ecosystem

2019 ◽  
Vol 23 (2) ◽  
pp. 6-16
Author(s):  
A. I. Il’inskii ◽  
Z. Mierzwa
Keyword(s):  
Financial Markets ◽  
Initial Level ◽  
Wealth Distribution ◽  
Distribution Models ◽  
Equal Distribution ◽  
Gini Coefficients ◽  
Distribution Of Wealth ◽  
Positive Balance ◽  
The Us ◽  
Public Views

The paper deals with the problems of measuring uneven wealth distribution in the bitcoin ecosystem. All existing bitcoin distribution models depend on the analysis of bitcoin wallets and bitcoin addresses. They are based on the Bitcoin Rich List. This approach is insufficient due to the inscrutable relationships between people owning bitcoin, bitcoin wallets, and bitcoin addresses. In this paper, we used the methods of comparative analysis resulted in graphics as represented by Lorentz and Lamé curves and distribution of the Gini coefficients and the Kolkata index. We identified empirical cumulative functions of wealth distribution and the number of addresses with positive balance during the bubble and after its explosion. Approximations of the distribution of ‘poor’ and ‘rich’ addresses have been obtained and compared with the other results from the cited literature. The general public views the equality of network members as synonymous with the equal distribution of wealth among them. Emerging financial bubbles, especially in the US financial markets, lead to an increase in income inequality. However, after a bubble explodes, the inequality falls to the initial level.

Konsep Distribusi Pendapatan Dalam Islam

2016 ◽  
Vol 1 (1) ◽  
pp. 85-97
Author(s):  
Moh. Ah. Subhan ZA
Keyword(s):  
Property Rights ◽  
Social Life ◽  
Private Property ◽  
Wealth Distribution ◽  
The State ◽  
Private Property Rights ◽  
Job Opportunities ◽  
The Rich ◽  
The Difference ◽  
Distribution Of Income

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim.

scholarly journals Immigration and economic mobility

2021 ◽  
Author(s):  
Maria F. Hoen ◽  
Simen Markussen ◽  
Knut Røed
Keyword(s):  
Labor Market ◽  
Low Income ◽  
Labor Market Outcomes ◽  
Lower Class ◽  
Low Income Countries ◽  
Market Outcomes ◽  
Wide Range ◽  
Class Background ◽  
The Rich ◽  
Relative Prime

AbstractWe examine how immigration affects natives’ relative prime-age labor market outcomes by economic class background, with class background established on the basis of parents’ earnings rank. Exploiting alternative sources of variation in immigration patterns across time and space, we find that immigration from low-income countries reduces intergenerational mobility and thus steepens the social gradient in natives’ labor market outcomes, whereas immigration from high-income countries levels it. These findings are robust with respect to a wide range of identifying assumptions. The analysis is based on high-quality population-wide administrative data from Norway, which is one of the rich-world countries with the most rapid rise in the immigrant population share over the past two decades. Our findings suggest that immigration can explain a considerable part of the observed relative decline in economic performance among natives with a lower-class background.

Class, Crime, and Cannibalism in The String of Pearls; or, The Demon Barber as Bourgeois Bogeyman

2020 ◽  
Vol 5 (1) ◽  
pp. 118-131
Author(s):  
Leah Richards
Keyword(s):  
Middle Class ◽  
Urban Poor ◽  
Lower Class ◽  
Class Conflict ◽  
Middle Classes ◽  
Working Classes ◽  
The Poor ◽  
The Rich ◽  
Cultural Resonance ◽  
String Of Pearls

Although the tale of Sweeney Todd is one with significant cultural resonance, little has been written about the text itself, The String of Pearls. This article argues that the text engages with anxieties about class conflict through a narrative that enacts exaggerated versions of various interactions. In the nineteenth century, critics objected to the cheap fiction pejoratively known as penny dreadfuls, asserting that the genre’s exciting tales of bloodshed, villainy, and mayhem would seduce readers to lives of debauchery and crime, but I argue that this concern about cheap fiction was not for the preservation of the souls of the poor and working classes but rather for the preservation of the middle classes' own corporeal bodies and the system that privileged and protected them. While there is no question that the narrative enacts extreme manifestations of problems facing the urban poor—among them, contaminated or even poisonous foodstuffs and the perils of urban anonymity—it also features an intractable and rapacious lower class and a subversion of the master-servant dynamic on which the comforts of the middle class were constructed, and so, in addition to adventure, detection, and young love, The String of Pearls offers a dark revenge fantasy of class-based violence that the middle-class critics of the penny dreadful were perhaps justified in fearing. tl;dr: Eat the Rich!

Non-Maxwellian kinetic equations modeling the dynamics of wealth distribution

2020 ◽  
Vol 30 (04) ◽  
pp. 685-725 ◽  
Author(s):  
Giulia Furioli ◽  
Ada Pulvirenti ◽  
Elide Terraneo ◽  
Giuseppe Toscani
Keyword(s):  
Steady State ◽  
Wealth Distribution ◽  
Kinetic Equations ◽  
Planck Equation ◽  
Logarithmic Sobolev Inequality ◽  
One Dimensional ◽  
Distribution Of Wealth ◽  
Multi Agent ◽  
Fokker Planck Equations ◽  
Fokker Planck

We introduce a class of new one-dimensional linear Fokker–Planck-type equations describing the dynamics of the distribution of wealth in a multi-agent society. The equations are obtained, via a standard limiting procedure, by introducing an economically relevant variant to the kinetic model introduced in 2005 by Cordier, Pareschi and Toscani according to previous studies by Bouchaud and Mézard. The steady state of wealth predicted by these new Fokker–Planck equations remains unchanged with respect to the steady state of the original Fokker–Planck equation. However, unlike the original equation, it is proven by a new logarithmic Sobolev inequality with weight and classical entropy methods that the solution converges exponentially fast to equilibrium.

scholarly journals Global economy and its sustainability in the globalized world

2020 ◽  
Vol 74 ◽  
pp. 04008
Author(s):  
Jorma Jaakko Imppola
Keyword(s):  
Environmental Sustainability ◽  
Global Economy ◽  
Critical Factor ◽  
Poor People ◽  
Poor Countries ◽  
Global Sustainability ◽  
Distribution Of Wealth ◽  
The Rich ◽  
Rich Countries ◽  
Globalized World

Globalized economy has changed the whole world both in good and in bad. The changes in economy have significant impact on the everyday life, which affect practically everyone. Because the economy, monetary systems and financial markets form the operational platform of the globalized world, it is necessary to understand their role. As the economy is one of the three main pillars of the sustainability, it is impossible to develop the global sustainability without stabile and sustainable economy. The inequality of the distribution of wealth and prosperity is the most critical factor of economic sustainability and the ever-increasing accumulation of wealth and money is one of the most crucial factors jeopardising the global sustainability. People and nations struggling economically are usually having the biggest challenges with both social and environmental sustainability. Wealth works dually: it enables rich people and nations to increase their consumption footprint and they hinder poor people and nations to make consumer decisions and investments needed to improve sustainability. The rich countries have outsourced their unsustainable industrial activities to poor countries having undeveloped legislation and maximized their profits by utilising these socially and ecologically unsustainable labour and production practises, which most are illegal in the rich countries.

A Model of Social Identity with an Application to Political Economy: Nation, Class, and Redistribution

2009 ◽  
Vol 103 (2) ◽  
pp. 147-174 ◽  
Author(s):  
MOSES SHAYO
Keyword(s):  
Political Economy ◽  
Social Identity ◽  
Negative Relationship ◽  
Lower Class ◽  
National Identities ◽  
Equilibrium Concept ◽  
National Identification ◽  
Strong Negative Relationship ◽  
The Rich ◽  
And Behavior

This article develops a model for analyzing social identity and applies it to the political economy of income redistribution, focusing on class and national identities. The model attempts to distill major findings in social psychology into a parsimonious statement of what it means to identify with a group and what factors determine the groups with whom people identify. It then proposes an equilibrium concept where both identities and behavior are endogenously determined. Applying this model to redistribution helps explain three empirical patterns in modern democracies. First, national identification is more common among the poor than among the rich. Second, national identification tends to reduce support for redistribution. Third, across democracies there is a strong negative relationship between the prevalence of national identification and the level of redistribution. The model further points to national eminence, national threats, and diversity within the lower class as factors that can reduce redistribution.

Egalitarianism, Inequality, and Age: The Rural North in 1860

1981 ◽  
Vol 41 (1) ◽  
pp. 85-93 ◽  
Author(s):  
Jeremy Atack ◽  
Fred Bateman
Keyword(s):  
Life Cycle ◽  
Civil War ◽  
Age Structure ◽  
Wealth Distribution ◽  
Distribution Of Wealth ◽  
Egalitarian Society ◽  
Heads Of Household ◽  
Life Cycle Pattern

Little is known about the distribution of wealth in the allegedly egalitarian society of the rural North on the eve of the Civil War. This paper investigates the role of the age structure of the heads of household and a life-cycle pattern of accumulation in determining the wealth distribution within that society and among the various groups that comprised it. The results suggest a need for caution in making cross-group or inter-temporal comparisons in wealth distributions without taking account of such factors.

The Capitalist World-economy in the Longue Durée

2017 ◽  
Vol 3 (2) ◽  
pp. 163-196 ◽  
Author(s):  
Şahan Savaş Karataşlı
Keyword(s):  
World Economy ◽  
Bimodal Distribution ◽  
Global Distribution ◽  
Distribution Of Wealth ◽  
Early Twenty ◽  
Systemic Crisis ◽  
Longue Duree ◽  
Capitalist World Economy ◽  
Capitalist World ◽  
Longue Durée

This article examines the global distribution of wealth within the capitalist world-economy over the longue durée. In stark contrast to the convergence of wealth predicted by modernization theory, the relatively stable bimodal (core-periphery) structure predicted by dependency theory, and the relatively stable trimodal (core-semiperiphery-periphery) structure, this article finds that the structure of the distribution of wealth in the world economy has transformed with each successive world hegemonic cycle. By adopting a longue durée perspective and a new statistical approach, I develop Arrighi and Drangel's (1986) method of conceptualizing, operationalizing, and measuring the global distribution of wealth within the capitalist world-economy. Through an examination of the period from 1500 to 2008, this article shows that the global distribution of wealth within the capitalist world-economy has transformed from a unimodal distribution during the period of Dutch hegemony to a bimodal distribution during the period of British hegemony, then to a trimodal distribution during the period of US hegemony, and now to a quadrimodal distribution in the early twenty-first century. While the global wealth hierarchy remained stable during periods of world hegemonies, it was transformed during periods of systemic crisis and hegemonic transition, thereby creating new forms of hierarchies.

scholarly journals MIGRATION POVERTY AND SLAVERY OF HUMAN BEING (STUDY IN PSYCHOLOGY PERSPECTIVE)

2019 ◽  
Vol 21 (2) ◽  
pp. 59-67
Author(s):  
Reza Fahmi
Keyword(s):  
Group Discussion ◽  
Simple Random Sampling ◽  
Lower Class ◽  
Human Being ◽  
Psychological Scale ◽  
Class Society ◽  
Depth Interview ◽  
Psychology Perspective ◽  
The Mean ◽  
Data Documentation

The research aims: (1) Describing a migration of poverty from Indonesian people. (2) Describing a slave of human being. (3) The correlation between migrations of poverty and slavery of human being. The research used mixing methods as an approach. The population of the study was about 128 people. But only 97 people involved in this research. The simple random sampling was using as a technique of sampling. The data collected with psychological scale, data documentation, depth interview and Focus Group Discussion). The research found that: firstly, the average of the mean and percentage of migration poverty were categories high. It means that most of Indonesian people who migrate as a worker are coming from lower class society. Secondly, the average mean and percentage of slavery of human being high. It means that most of Indonesia people could not have bargaining power for doing their job. Then, there are correlation between migrant poverty and slavery of human being involved Indonesian worker.

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