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Why the rich become richer: insights from an agent-based model

Why the rich become richer: insights from an agent-based model The aim of this paper is to investigate the reason why the rich get richer in an agent-based macroeconomic model. It shows that simulated top income and follows a power law. From a dynamical point of view, it is found that revenues from financial investments are the key factor to sustaining accumulation. In other words, -dependent asymmetries among agents generates the power law tail. Keywords: agent-based model; income distribution; distribution; Gini coefficient; inequality. Reference to this paper should be made as follows: Desiderio, S. and Chen, S. (2016) `Why the rich become richer: insights from an agent-based model', Int. J. Computational Economics and Econometrics, Vol. 6, No. 3, pp.258­275. Biographical notes: Saul Desiderio received a PhD in Economics in 2008 from the Polytechnic University of Ancona. He is an Associate Professor of Economics at the Business School of Shantou University, China. He has been working on agent-based modelling and game theory. Siyan Chen received a PhD in Economics in 2011 from the Polytechnic University of Ancona. She is an Associate Professor of Economics at the Business School of Shantou University, China. Her research interests focus on agent-based modelling of income distribution and debt. This paper is a revised http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Computational Economics and Econometrics Inderscience Publishers

Why the rich become richer: insights from an agent-based model

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Publisher
Inderscience Publishers
Copyright
Copyright © 2016 Inderscience Enterprises Ltd.
ISSN
1757-1170
eISSN
1757-1189
DOI
10.1504/IJCEE.2016.077249
Publisher site
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Abstract

The aim of this paper is to investigate the reason why the rich get richer in an agent-based macroeconomic model. It shows that simulated top income and follows a power law. From a dynamical point of view, it is found that revenues from financial investments are the key factor to sustaining accumulation. In other words, -dependent asymmetries among agents generates the power law tail. Keywords: agent-based model; income distribution; distribution; Gini coefficient; inequality. Reference to this paper should be made as follows: Desiderio, S. and Chen, S. (2016) `Why the rich become richer: insights from an agent-based model', Int. J. Computational Economics and Econometrics, Vol. 6, No. 3, pp.258­275. Biographical notes: Saul Desiderio received a PhD in Economics in 2008 from the Polytechnic University of Ancona. He is an Associate Professor of Economics at the Business School of Shantou University, China. He has been working on agent-based modelling and game theory. Siyan Chen received a PhD in Economics in 2011 from the Polytechnic University of Ancona. She is an Associate Professor of Economics at the Business School of Shantou University, China. Her research interests focus on agent-based modelling of income distribution and debt. This paper is a revised

Journal

International Journal of Computational Economics and EconometricsInderscience Publishers

Published: Jan 1, 2016

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