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A simple probabilistic approach of the yard-sale model. (English) Zbl 1382.91056

Summary: We propose in the present paper a probabilistic approach of the so-called Hayes Yard-Sale model [B. Hayes, “Follow the money”, Am. Sci. 90, 400–405 (2002)] using classical diffusion approximations of Markov chains. We partly recover, at the very least for small and high frequency transactions, recent results of B. M. Boghosian [“Kinetics of wealth and the Pareto law”, Phys. Rev. E 89, No. 4, Article ID 042804, 22 p. (2014; doi:10.1103/PhysRevE.89.042804)] and B. M. Boghosian et al. [J. Stat. Phys. 161, No. 6, 1339–1350 (2015; Zbl 1332.35252)] concerning both wealth condensation in the absence of redistribution mechanisms and steady state distributions when a uniform capital taxation is imposed.

MSC:

91B64 Macroeconomic theory (monetary models, models of taxation)
91A80 Applications of game theory
60H30 Applications of stochastic analysis (to PDEs, etc.)

Citations:

Zbl 1332.35252
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References:

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