Do We All Face the Same Constraints?
There seems to be widespread agreement on the functional form of wealth and income distributions observing a power law tail [3, 13, 9, 14], while the left part of wealth and income distributions is somewhat more controversial and typically found to follow an exponential or Gamma-like distribution [1, 3, 13, 11]. The presentations by Clementi, Galegatti, Fujiwara, Souma, Sinha, and Yakovenko at this conference certainly point in the same direction but the evidence on income distributions clearly outweighs that on wealth—which is hardly surprising because it is much easier to observe income flows than the stock of wealth. None the less, we would like to focus our attention on the distribution of wealth and argue that the observed distributional regularities are statistical equilibrium outcomes of two distinct economic processes.
KeywordsWealth Distribution Maximum Entropy Principle Wealth Level Personal Wealth Mortgage Debt
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