scholarly journals Effect of Savings on a Gas-Like Model Economy with Credit and Debt

Entropy ◽  
2021 ◽  
Vol 23 (2) ◽  
pp. 196
Author(s):  
Guillermo Chacón-Acosta ◽  
Vanessa Ángeles-Sánchez
Keyword(s):  
Economic Growth ◽  
Partition Function ◽  
Statistical Physics ◽  
Wealth Distribution ◽  
Economic Inequality ◽  
Economic Literature ◽  
Payment Methods ◽  
Income And Wealth Distribution ◽  
Ensemble Formalism

In kinetic exchange models, agents make transactions based on well-established microscopic rules that give rise to macroscopic variables in analogy to statistical physics. These models have been applied to study processes such as income and wealth distribution, economic inequality sources, economic growth, etc., recovering well-known concepts in the economic literature. In this work, we apply ensemble formalism to a geometric agents model to study the effect of saving propensity in a system with money, credit, and debt. We calculate the partition function to obtain the total money of the system, with which we give an interpretation of the economic temperature in terms of the different payment methods available to the agents. We observe an interplay between the fraction of money that agents can save and their maximum debt. The system’s entropy increases as a function of the saved proportion, and increases even more when there is debt.

scholarly journals Some Major Causes of Current Economic Crises and Leadership Strategies

2010 ◽  
Author(s):  
Asım Şen
Keyword(s):  
Economic Growth ◽  
Wealth Distribution ◽  
Economic Inequality ◽  
Wealth Inequality ◽  
Shared Vision ◽  
Leadership Strategies ◽  
Economic Crises ◽  
The People ◽  
Education And Employment ◽  
Sustainable Economic Growth

This paper argues that economic inequality is one of the major causes of the current economic crises and provides some appropriate leadership strategies for solving them. Inequality is defined as unequal opportunities for economical activities among the people of a nation and among the nations of the world. The major cause of most current economic crises is the income and wealth inequality which are generated mainly by the economic growth. Leaders in the past and currently could not utilize appropriate strategies to solve the inequality problems and consequently the economic crisis grew and reached the current levels. In order to solve the current economic crises it is necessary to eliminate the economic inequality problems and establish fair and sustainable economic growth. The leadership strategies play crucial role for this process. These strategies included in this paper are establishing the local and global shared vision for all; balancing the income and wealth distribution; providing the equal opportunities for education and employment; sharing the production and consumption; and maintaining the fair and sustainable globalization and economic growth.

scholarly journals Economic inequality global knowledge in the context of historical research of social policy issues

2019 ◽  
pp. 211-214
Author(s):  
Yuriy S. Nikiforov
Keyword(s):  
Wealth Distribution ◽  
Economic Inequality ◽  
Historical Research ◽  
Scientific Conference ◽  
Global Knowledge ◽  
Main Attention ◽  
The Usa ◽  
The Uk ◽  
Income And Wealth Distribution ◽  
The Welfare State

The article presents an overview of the international scientific conference "The Global Knowledge of Economic Inequality. The Measurement of Income and Wealth Distribution since 1945", which took place on November 15 to 17, 2018, at the German Historical Institute London (United Kingdom). The conference was dedicated to the state and to prospects of research into the problems of economic inequality in the world. The main attention of the conference participants was focused on issues of the welfare state, economic inequality, its measurement, income, wealth, and poverty in various perspectives. More than 30 people made presentations in English and in discussions, including scientists from the UK, China, Russia, the USA, Germany, France and other countries.

Economic Growth with Heterogeneous Households, Gender Division of Labor, and Elastic Labor Supply

2013 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Division Of Labor ◽  
Wealth Distribution ◽  
Group Model ◽  
Labor Participation ◽  
Female Labor ◽  
Gender Division Of Labor ◽  
Elastic Labor Supply ◽  
Income And Wealth Distribution

The purpose of this study is to propose a growth model with gender-heterogeneous households and an elastic labor supply. The dynamic model describes an interaction among economic growth, time, gender, income, and wealth distribution. Our investigation differs from traditional growth and distribution related studies, in that we propose an alternative approach to consumer behavior. We simulate the 3-group model to provide insights into the complexity of growth, income, and wealth distribution with a gender division of labor. Further, we are able to gain a better understanding of dynamic interactions among economic growth, income and wealth distribution, and female labor participation. For instance, our comparative dynamic analysis demonstrates that either a rise in female education or the propensity to work of any one group will increase the female labor participation within that group but that such a change has weak effects on the female labor participation within all other groups.

scholarly journals The Role of Temperature in Economic Exchange - An Empirical Analysis

2015 ◽  
Vol 4 (3) ◽  
pp. 65-89 ◽  
Author(s):  
Bojan Dimitrijević ◽  
Ivan Lovre
Keyword(s):  
Empirical Analysis ◽  
Statistical Physics ◽  
Wealth Distribution ◽  
Modern Science ◽  
Developed Countries ◽  
Economic Exchange ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Income And Wealth Distribution

Abstract As a synthesis of economics and physics and an attempt to apply the methods and models of statistical physics to economics, econophysics is presently a new, growing and very dynamic branch of modern science. Therefore, the subject of this paper is to analyse the relationship and interdependence between thermodynamics and economics, and it aims to show similarities, analogies and correspondence between the main categories, methods and models of thermodynamics on one hand, and economics on the other. The paper analyses the relation between economics and thermodynamics, as well as the probability distribution in the kinetic theory of gases corresponding to money, income and wealth distribution, connects entropy with utility and the principle of operation of the thermal engine with economic exchange. The final part of the paper empirically analyzes temperature differences in the exchange between Serbia and the selected EU countries. There are differences in temperature between Serbia and the group of selected countries. Results of the empirical analysis shows that the exchange between countries is based on principles of thermodynamics and that developed countries generate more profits and benefits from exchange.

scholarly journals Effect of Savings on a Gas-Like Model Economy with Credit and Debt

2021 ◽  
Author(s):  
Guillermo Chacón-Acosta ◽  
Vanessa Ángeles-Sánchez
Keyword(s):  
Partition Function ◽  
Payment Methods ◽  
Ensemble Formalism

In this work, we apply ensemble formalism to a geometric agents model to study the effect of saving propensity in a system with money, credit, and debt. We calculate the partition function to obtain the total money of the system, with which we give an interpretation of the economic temperature in terms of the different payment methods available to the agents. We observe an interplay between the fraction of money that agents can save and the debt that can be financed. We also observe that the system’s entropy increases as the saved proportion increases and increases, even more, when debt is present.

scholarly journals Economic Growth with Social Status, Spirit of Capitalism, and Conspicuous Consumption

2020 ◽  
Vol 9 (1) ◽  
pp. 1-10
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Social Status ◽  
Growth Model ◽  
Open Economy ◽  
Wealth Distribution ◽  
Small Open Economy ◽  
Conspicuous Consumption ◽  
Wealth Accumulation ◽  
Spirit Of Capitalism ◽  
Income And Wealth Distribution

The purpose of this study is to introduce social status, conspicuous consumption, and spirit of capitalism into neoclassical growth model. This paper studies a dynamic interdependence between economic growth, economic structural change, income and wealth distribution, social status, conspicuous consumption, and spirit of capitalism in a small-open economy. We build a heterogeneous-households growth model with endogenous wealth accumulation and social status. The dynamics of J-households economy is described by J differential equations. We simulate the motion of the model with three groups of households. We carry out comparative dynamic analysis with regard to some parameters.

scholarly journals Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach

2021 ◽  
Author(s):  
Yves Achdou ◽  
Jiequn Han ◽  
Jean-Michel Lasry ◽  
Pierre-Louis Lions ◽  
Benjamin Moll
Keyword(s):  
Continuous Time ◽  
Wealth Distribution ◽  
Closed Form Solution ◽  
Form Solution ◽  
Heterogeneous Agent ◽  
Saving Behavior ◽  
Income And Wealth Distribution ◽  
Heterogeneous Agent Models ◽  
Special Case

Abstract We recast the Aiyagari-Bewley-Huggett model of income and wealth distribution in continuous time. This workhorse model – as well as heterogeneous agent models more generally – then boils down to a system of partial differential equations, a fact we take advantage of to make two types of contributions. First, a number of new theoretical results: (i) an analytic characterization of the consumption and saving behavior of the poor, particularly their marginal propensities to consume; (ii) a closed-form solution for the wealth distribution in a special case with two income types; (iii) a proof that there is a unique stationary equilibrium if the intertemporal elasticity of substitution is weakly greater than one. Second, we develop a simple, efficient and portable algorithm for numerically solving for equilibria in a wide class of heterogeneous agent models, including – but not limited to – the Aiyagari-Bewley-Huggett model.

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