A poor agent and subsidy: an investigation through CCM model

Abstract

In this work, the dynamics of agents below a threshold line in some modified CCM type kinetic wealth exchange models are studied. These agents are eligible for subsidy as can be seen in any real economy. An interaction is prohibited if both of the interacting agents’ wealth fall below the threshold line. A walk for such agents can be conceived in the abstract gain–loss space (GLS) and is macroscopically compared to a lazy walk. The effect of giving subsidy once to such agents is checked over, giving repeated subsidy from the point of view of the walk in GLS. It is seen that the walk has more positive drift if the subsidy is given once. The correlations and other interesting quantities are studied. This article is part of the theme issue ‘Kinetic exchange models of societies and economies’.