Wealth Rheology
We study wealth rank correlations in a simple model of macroeconomy. To quantify rank correlations between wealth rankings at different times, we use Kendall’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-06-01
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| Series: | Entropy |
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| Online Access: | https://www.mdpi.com/1099-4300/23/7/842 |
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| author | Zdzislaw Burda Malgorzata J. Krawczyk Krzysztof Malarz Malgorzata Snarska |
| author_facet | Zdzislaw Burda Malgorzata J. Krawczyk Krzysztof Malarz Malgorzata Snarska |
| author_sort | Zdzislaw Burda |
| collection | DOAJ |
| description | We study wealth rank correlations in a simple model of macroeconomy. To quantify rank correlations between wealth rankings at different times, we use Kendall’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>τ</mi></semantics></math></inline-formula> and Spearman’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>ρ</mi></semantics></math></inline-formula>, Goodman–Kruskal’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>γ</mi></semantics></math></inline-formula>, and the lists’ overlap ratio. We show that the dynamics of wealth flow and the speed of reshuffling in the ranking list depend on parameters of the model controlling the wealth exchange rate and the wealth growth volatility. As an example of the rheology of wealth in real data, we analyze the lists of the richest people in Poland, Germany, the USA and the world. |
| first_indexed | 2024-03-10T09:55:22Z |
| format | Article |
| id | doaj.art-0ae925364137410f8f2fe2cb660d5cb7 |
| institution | Directory Open Access Journal |
| issn | 1099-4300 |
| language | English |
| last_indexed | 2024-03-10T09:55:22Z |
| publishDate | 2021-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Entropy |
| spelling | doaj.art-0ae925364137410f8f2fe2cb660d5cb72023-11-22T02:23:44ZengMDPI AGEntropy1099-43002021-06-0123784210.3390/e23070842Wealth RheologyZdzislaw Burda0Malgorzata J. Krawczyk1Krzysztof Malarz2Malgorzata Snarska3Faculty of Physics and Applied Computer Science, AGH University of Science and Technology, Mickiewicza 30, PL-30059 Kraków, PolandFaculty of Physics and Applied Computer Science, AGH University of Science and Technology, Mickiewicza 30, PL-30059 Kraków, PolandFaculty of Physics and Applied Computer Science, AGH University of Science and Technology, Mickiewicza 30, PL-30059 Kraków, PolandDepartment of Financial Markets, Cracow University of Economics, Rakowicka 27, PL-31510 Kraków, PolandWe study wealth rank correlations in a simple model of macroeconomy. To quantify rank correlations between wealth rankings at different times, we use Kendall’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>τ</mi></semantics></math></inline-formula> and Spearman’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>ρ</mi></semantics></math></inline-formula>, Goodman–Kruskal’s <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>γ</mi></semantics></math></inline-formula>, and the lists’ overlap ratio. We show that the dynamics of wealth flow and the speed of reshuffling in the ranking list depend on parameters of the model controlling the wealth exchange rate and the wealth growth volatility. As an example of the rheology of wealth in real data, we analyze the lists of the richest people in Poland, Germany, the USA and the world.https://www.mdpi.com/1099-4300/23/7/842Bouchaud–Mézard modelrank correlationsGini coefficientwealth distributionwealth inequality |
| spellingShingle | Zdzislaw Burda Malgorzata J. Krawczyk Krzysztof Malarz Malgorzata Snarska Wealth Rheology Entropy Bouchaud–Mézard model rank correlations Gini coefficient wealth distribution wealth inequality |
| title | Wealth Rheology |
| title_full | Wealth Rheology |
| title_fullStr | Wealth Rheology |
| title_full_unstemmed | Wealth Rheology |
| title_short | Wealth Rheology |
| title_sort | wealth rheology |
| topic | Bouchaud–Mézard model rank correlations Gini coefficient wealth distribution wealth inequality |
| url | https://www.mdpi.com/1099-4300/23/7/842 |
| work_keys_str_mv | AT zdzislawburda wealthrheology AT malgorzatajkrawczyk wealthrheology AT krzysztofmalarz wealthrheology AT malgorzatasnarska wealthrheology |