Societies should be ideally equitable. However, in reality the scenario is very different and the phenomena of socio-economic inequalities have plagued mankind from times immemorial. We now ask a question: Can higher savings moderate the income inequality? In this paper, we have tried to address this question and establish an empirical link between the income inequality with savings, mainly for closed economies, and also relate it to an existing theoretical model  based on the principle of kinetic theory of gases. We tested our model empirically using Gini Index (a measure for income inequality) and Gross Domestic Savings (percentage of GDP) , and observed that our model holds reasonably true for many real closed economies of the world.
A society or country with income equally distributed among its people is truly a fiction! The phenomena of socioeconomic inequalities have been plaguing mankind from times immemorial. We are interested in gaining an insight about the co-evolution of the countries in the inequality space, from a data science perspective. For this purpose, we use the time series data for Gini indices of different countries, and construct the equal-time cross-correlation matrix. We then use this to construct a similarity matrix and generate a map with the countries as different points generated through a multi-dimensional scaling technique. We also produce a similar map of different countries using the time series data for Gross Domestic Savings (\% of GDP). We also pose a different, yet significant, question: Can higher savings moderate the income inequality? In this paper, we have tried to address this question through another data science technique - linear regression, to seek an empirical linkage between the income inequality and savings, mainly for relatively small or closed economies. This question was inspired from an existing theoretical model proposed by Chakraborti-Chakrabarti (2000), based on the principle of kinetic theory of gases. We tested our model empirically using Gini index and Gross Domestic Savings , and observed that the model holds reasonably true for many economies of the world.
R
Societies should be ideally equitable. However, in reality the scenario is very different and the phenomena of socio-economic inequalities have plagued
A society or country with income equally distributed among its people is truly a fiction! The phenomena of socioeconomic inequalities have been plaguing
R
now ask a
are interested in gaining an insight about the co-evolution of the countries in the inequality space, from a data science perspective. For this purpose, we use the time series data for Gini indices of different countries, and construct the equal-time cross-correlation matrix. We then use this to construct a similarity matrix and generate a map with the countries as different points generated through a multi-dimensional scaling technique. We also produce a similar map of different countries using the time series data for Gross Domestic Savings (\% of GDP). We also pose a different, yet significant,
R
and establish an empirical link
through another data science technique - linear regression, to seek an empirical linkage
R
with
and
R
closed economies, and also relate it to
relatively small or closed economies. This question was inspired from
A
proposed by Chakraborti-Chakrabarti (2000),
R
Index (a measure for income inequality)
index
D
(percentage of GDP)
R
our
the
D
real closed