Taxes in a simple wealth distribution model by inelastically scattering particles

Details Taxes in a simple wealth distribution model by inelastically scattering particles Taxes in a simple wealth distribution model by inelastically scattering particles

2008-07-28

arxiv.org/abs/0807.4484v1

Economy

Quantitative Finance

General Finance

7 pages, 7 figures

Scientific paper

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected among the population according to a given criterion. Additionally, we show that different optimal levels of taxes may exist depending on the redistribution criterion.

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