Inequality and the Financial Accumulation Process: A Computational Economic Analysis of Income and Wealth Dynamics

PSN: Income Inequality (Topic) Pub Date : 2015-01-29 DOI:10.2139/ssrn.2557883

Y. Biondi, Simone Righi

{"title":"Inequality and the Financial Accumulation Process: A Computational Economic Analysis of Income and Wealth Dynamics","authors":"Y. Biondi, Simone Righi","doi":"10.2139/ssrn.2557883","DOIUrl":null,"url":null,"abstract":"Our computational economic analysis investigates the relationship between inequality and the financial accumulation process in the study of income and wealth distributions. Extending the baseline model by Levy et al., we characterise the economic process trough featured return structures generating alternative stylised evolutions of income and wealth through historical time. First we explore the limited heuristic contribution of one and two factors models comprising one single stock (capital wealth) and one single flow factor (labour) as pure drivers of income and wealth generation and allocation over time. Then we introduce heuristic models of taxation and financial market pricing in line with the baseline approach. Our computational economic analysis corroborates that the financial accumulation process featuring compound returns plays a significant role as socioeconomic source of inequality, while institutional configurations play a significant role in framing and shaping the aggregate economic process that evolves over socioeconomic space and time.An updated version is available at: http://ssrn.com/abstract=2628536","PeriodicalId":346888,"journal":{"name":"PSN: Income Inequality (Topic)","volume":"18 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2015-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"PSN: Income Inequality (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2557883","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}

引用次数: 4

Abstract

Our computational economic analysis investigates the relationship between inequality and the financial accumulation process in the study of income and wealth distributions. Extending the baseline model by Levy et al., we characterise the economic process trough featured return structures generating alternative stylised evolutions of income and wealth through historical time. First we explore the limited heuristic contribution of one and two factors models comprising one single stock (capital wealth) and one single flow factor (labour) as pure drivers of income and wealth generation and allocation over time. Then we introduce heuristic models of taxation and financial market pricing in line with the baseline approach. Our computational economic analysis corroborates that the financial accumulation process featuring compound returns plays a significant role as socioeconomic source of inequality, while institutional configurations play a significant role in framing and shaping the aggregate economic process that evolves over socioeconomic space and time.An updated version is available at: http://ssrn.com/abstract=2628536

查看原文本刊更多论文

不平等和金融积累过程:收入和财富动态的计算经济分析

我们的计算经济分析研究了收入和财富分配研究中不平等与金融积累过程之间的关系。我们扩展了Levy等人的基线模型，通过特征回报结构来描述经济过程，从而产生历史时间内收入和财富的另类风格化演变。首先，我们探讨了由单一股票(资本财富)和单一流动因素(劳动力)组成的单因素和双因素模型作为收入和财富产生和分配的纯粹驱动因素的有限启发式贡献。然后，我们根据基线方法引入了税收和金融市场定价的启发式模型。我们的计算经济分析证实，以复合回报为特征的金融积累过程作为不平等的社会经济来源发挥着重要作用，而制度配置在构建和塑造随社会经济空间和时间演变的总体经济过程中发挥着重要作用。更新版本可在:http://ssrn.com/abstract=2628536

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

PSN: Income Inequality (Topic)

自引率

0.00%

发文量