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Influence of saving propensity on the power law tail of wealth distribution

Some general features of kinetic multi-agent models are reviewed, with particular attention to the relation between the agent saving propensities and the form of the equilibrium wealth distribution. The effect of a finite cutoff of the saving propensity distribution on the corresponding wealth distribution is studied. Various results about kinetic multi-agent models are collected and used to construct a realistic wealth distribution with zero limit for small values of wealth, an exponential form at intermediate and a power law tail at larger values of wealth.

preprint2005arXivOpen access
Marco PatriarcaAnirban ChakrabortiGuido Germano
q-fin.GNphysics.soc-ph
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Marco PatriarcaAnirban ChakrabortiGuido Germano

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