Continuum and Thermodynamic Limits for a Wealth-Distribution Model

2020 ◽  
pp. 79-99
Author(s):  
Bertram Düring ◽  
Nicos Georgiou ◽  
Sara Merino-Aceituno ◽  
Enrico Scalas
Keyword(s):  
Wealth Distribution ◽  
Distribution Model ◽  
Thermodynamic Limits

scholarly journals The Study of a Wealth Distribution Model with a Linear Collision Kernel

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Xia Zhou ◽  
Kaili Xiang ◽  
Rongmei Sun
Keyword(s):  
Steady State ◽  
Boltzmann Equation ◽  
Substitution Rate ◽  
Wealth Distribution ◽  
Planck Equation ◽  
Steady State Solution ◽  
State Solution ◽  
Distribution Model ◽  
Collision Kernel ◽  
Continuous Trading

The wealth substitution rate, which describes the substitution relationship between agents’ investment in wealth, is introduced into the collision kernel of the Boltzmann equation to study wealth distribution. Using the continuous trading limit, the Fokker–Planck equation is derived and the steady-state solution is obtained. The results show that the inequality of wealth distribution decreases as the wealth substitution rate increases under certain assumptions. The wealth distribution has a bimodal shape if the wealth substitution rate does not equal one.

scholarly journals INHERITANCE WEALTH DISTRIBUTION MODEL AND ITS IMPLICATION TO ECONOMY

2019 ◽  
Vol 7 (3) ◽  
pp. 01-10 ◽  
Author(s):  
Dian Berkah ◽  
Tjiptohadi Sawarjuwono
Keyword(s):  
Role Model ◽  
Dispute Settlement ◽  
Islamic Law ◽  
Wealth Distribution ◽  
Distribution Model ◽  
Interesting Phenomenon ◽  
Inheritance Law ◽  
The Family ◽  
The Government ◽  
Religious Courts

Purpose of study:  Inheritance wealth is one of the instruments of wealth distribution in Islam that potentially capable   to be a solution for economic inequality that triggered the multidimensional problems nations daily life. The concept of inheritance wealth distribution for Muslims has been summarized in Indonesian Islamic Law Compilation and in Marriage Act No. 1 year 1974. For non-Muslim society, the inheritance law is based on the concept of nations Civil Code and customary rules. The diversity in the concept of inheritance wealth distribution in Indonesia cannot be separated from the nature of the family and its influence on the assets, which is believed by the community. Methodology: This study used participation action research method as a qualitative approach in order to frame, analyze and solutions in form of strategic role model for the Government in completing and streamlining the inheritance wealth distribution in Indonesia. Result: The solutions will be based on problems faced by the Religious Courts and Islamic organizations in conducting inheritance wealth distribution. Moreover, propose inheritance wealth as public fund in addition to zakat, infaq, shodaqoh and endowments. Implications/Applications: The implementation and dispute settlement in inheritance wealth distribution are exercised by Religious Courts,  as well as the Islamic organization such as Muhammadiyah and Nahdatul Ulama (NU). Diversity  of institutions becomes an interesting phenomenon in Indonesia inheritance wealth distribution. This potentially makes inheritance wealth distribution done well and can prevent conflicts of individuals in the family, hoarding treasure and minimize economic disparities in society.

scholarly journals The Investigation of a Wealth Distribution Model on Isolated Discrete Time Domains

2020 ◽  
Vol 2020 ◽  
pp. 1-21
Author(s):  
Chunhua Hu ◽  
Wenyi Huang ◽  
Tianhao Xie
Keyword(s):  
Relative Risk ◽  
Risk Aversion ◽  
Discrete Time ◽  
Rational Expectation ◽  
Absolute Risk ◽  
Wealth Distribution ◽  
Optimal Solution ◽  
Distribution Model ◽  
Relative Risk Aversion ◽  
Time Domains

A wealth distribution model on isolated discrete time domains, which allows the wealth to exchange at irregular time intervals, is used to describe the effect of agent’s trading behavior on wealth distribution. We assume that the agents have different degrees of risk aversion. The hyperbolic absolute risk aversion (HARA) utility function is employed to describe the degrees of risk aversion of agents, including decreasing relative risk aversion (DRRA), increasing relative risk aversion (IRRA), and constant relative risk aversion (CRRA). The effect of agent’s expectation on wealth distribution is taken into account in our wealth distribution model, in which the agents are allowed to adopt certain trading strategies to maximize their utility and improve their wealth status. The Euler equation and transversality condition for the model on isolated discrete time domains are given to prove the existence of the optimal solution of the model. The optimal solution of the wealth distribution model is obtained by using the method of solving the rational expectation model on isolated discrete time domains. A numerical example is given to highlight the advantages of the wealth distribution model.

THE WEALTH DISTRIBUTION MODEL WITH THE KICKBACK RATE

2008 ◽  
Vol 19 (10) ◽  
pp. 1555-1562
Author(s):  
YUJIE ZHANG ◽  
MINGFENG HE
Keyword(s):  
Gini Index ◽  
Wealth Distribution ◽  
Distribution Model ◽  
Level Increase ◽  
The One ◽  
Index Curve ◽  
Asset Exchange Model ◽  
Social Wealth ◽  
Asset Exchange ◽  
Fair Degree

We define an asset exchange model by adding the kickback rate to the trade, and discuss the Gini index with different kickback rates. It is found that for every kickback rate, the related Gini index tends to be steady; thus, the kickback rate — Gini index curve may be obtained. Furthermore, it is shown that the Gini index decreases when the kickback rate increases, so that the fair degree of social wealth distribution gets better. The Gini index reaches a minimum when the kickback rate is 0.58, and then it increases, as the accretion of the kickback rate destroys the fair degree of social wealth distribution. However, in all situations, the Gini index with kickback rate is less than the one without kickback. This means that the introduction of kickback rate is favorable to the raising of the fair degree of wealth distribution. We also define a moral index similar to the Gini index to weigh the differences of social moral level, and find that the differences of social moral level increase with time for the model with kickback rate.

Strategic Role of Zakat in Multidimensional Quality of Life in Sijunjung, Indonesia

2018 ◽  
Vol 15 (1) ◽  
pp. 55-72
Author(s):  
Herlin Hamimi ◽  
Abdul Ghafar Ismail ◽  
Muhammad Hasbi Zaenal
Keyword(s):  
Quality Of Life ◽  
Positive Impact ◽  
Wealth Distribution ◽  
Absolute Poverty ◽  
Before And After ◽  
The Status ◽  
Being There ◽  
The Impact

Zakat is one of the five pillars of Islam which has a function of faith, social and economic functions. Muslims who can pay zakat are required to give at least 2.5 per cent of their wealth. The problem of poverty prevalent in disadvantaged regions because of the difficulty of access to information and communication led to a gap that is so high in wealth and resources. The instrument of zakat provides a paradigm in the achievement of equitable wealth distribution and healthy circulation. Zakat potentially offers a better life and improves the quality of human being. There is a human quality improvement not only in economic terms but also in spiritual terms such as improving religiousity. This study aims to examine the role of zakat to alleviate humanitarian issues in disadvantaged regions such as Sijunjung, one of zakat beneficiaries and impoverished areas in Indonesia. The researcher attempted a Cibest method to capture the impact of zakat beneficiaries before and after becoming a member of Zakat Community Development (ZCD) Program in material and spiritual value. The overall analysis shows that zakat has a positive impact on disadvantaged regions development and enhance the quality of life of the community. There is an improvement in the average of mustahik household incomes after becoming a member of ZCD Program. Cibest model demonstrates that material, spiritual, and absolute poverty index decreased by 10, 5, and 6 per cent. Meanwhile, the welfare index is increased by 21 per cent. These findings have significant implications for developing the quality of life in disadvantaged regions in Sijunjung. Therefore, zakat is one of the instruments to change the status of disadvantaged areas to be equivalent to other areas.

Sign in / Sign up

Export Citation Format

Share Document