The Extended Yard-Sale Model of asset exchange is an agent-based economic model with binary transactions, and simple models of redistribution and Wealth-Attained Advantage. As recently shown, the model exhibits a second-order phase transition to a coexistence regime with partial wealth condensation. The evolution of its wealth distribution is described by a nonlinear, nonlocal Fokker-Planck equation. In this work, we demonstrate that solutions to this equation fit remarkably well to the actual wealth distribution of the U. S. in 2013. The two fit parameters provide evidence that the U.S. wealth distribution is partially wealth condensed.\\%DIF > over this time period. We present the model parameters for the US wealth distribution data as a function of time under the assumption that the distribution responds to their variation adiabatically. We argue that the time series of model parameters thus obtained provides a valuable new diagnostic tool for analyzing wealth inequality.
We present a stochastic, agent-based , binary-transaction Asset-Exchange Model (AEM) for wealth distribution that allows for agents with negative wealth. This model retains certain features of prior AEMs such as redistribution and wealth-attained advantage, but it also allows for shifts as well as scalings of the agent density function. We derive the Fokker-Planck equation describing its time evolution and we describe its numerical solution, including a methodology for solving the inverse problem of finding the model parameters that best match empirical data. Using this methodology, we compare the steady-state solutions of the Fokker-Planck equation with data from the United States Survey of Consumer Finances over a time period of 27 years. In doing so, we demonstrate agreement with empirical data of an average error less than 0.16\\%DIF > over this time period. We present the model parameters for the US wealth distribution data as a function of time under the assumption that the distribution responds to their variation adiabatically. We argue that the time series of model parameters thus obtained provides a valuable new diagnostic tool for analyzing wealth inequality.
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The Extended Yard-Sale Model of asset exchange is an
We present a stochastic,
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economic model with binary transactions, and simple models of redistribution and Wealth-Attained Advantage. As recently shown, the model exhibits a second-order phase transition to a coexistence regime with partial wealth condensation. The evolution of its wealth distribution is described by a nonlinear, nonlocal
, binary-transaction Asset-Exchange Model (AEM) for wealth distribution that allows for agents with negative wealth. This model retains certain features of prior AEMs such as redistribution and wealth-attained advantage, but it also allows for shifts as well as scalings of the agent density function. We derive the
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equation. In this work, we demonstrate that solutions to this equation fit remarkably well to the actual wealth distribution of the U. S. in 2013. The two fit parameters provide evidence that the U.S. wealth distribution is partially wealth condensed.
equation describing its time evolution and we describe its numerical solution, including a methodology for solving the inverse problem of finding the model parameters that best match empirical data. Using this methodology, we compare the steady-state solutions of the Fokker-Planck equation with data from the United States Survey of Consumer Finances over a time period of 27 years. In doing so, we demonstrate agreement with empirical data of an average error less than 0.16