[lbo-talk] Wealth Distribution & Kinetic Theory

Tayssir John Gabbour tayssir.john at googlemail.com
Wed Apr 25 00:33:46 PDT 2007


On 4/24/07, Jerry Monaco <monacojerry at gmail.com> wrote:
> Does anyone have a critique of this, besides just general hostility?
> The link to the original paper is at the bottom.
>
>
> World's economies show similarities in economic inequality
> http://www.physorg.com/news95074548.html

Seems interesting. I like this quote from one of the researchers in the physorg.com's article:

"As an agent gets richer, a feedback effect occurs by which the

rich are more likely to gain from a transaction than the poorer

agents -- thereby resulting in an accumulation of assets for the

richer players that is manifested as a power law tail."

The original paper [1] seems to define "thrift" as the ability of a richer player to exploit its advantage over a poorer one...

The physorg.com article's slant is interesting though, focussed on "experts", whatever that means:

"the scientists' findings might also provide guidance for experts

trying to distribute wealth more evenly."

I dunno; I've looked at the paper, and I think it's a cute metaphor. Don't know enough about the subjects to tell whether it goes further than that. Some remarks on econ sort of remind me of the simple models Hahnel uses in _ABCs of Political Economics_ to illustrate why inequality happens...

Tayssir --

[1] <http://arxiv.org/abs/physics/0703201> "Economic Inequality: Is it Natural?"



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