Seminar on Wealth Condensation in a Simple Model of Economy

Tuesday 21 May @ 2pm London time.

In this online seminar, Jean-Philippe Bouchaud ( Capital Fund Management) presents his paper:

Wealth Condensation in a Simple Model of Economy

The paper, which was co-authored by Marc Mezard (Bocconi University) and first published in 2000, introduces a simple model of an economy, where the time evolution is described by an equation capturing both exchange between individuals and random speculative trading. In this way the fundamental symmetry of the economy under an arbitrary change of monetary units is insured. A phase transition between an economy dominated by a few individuals and a situation where the wealth is more evenly spread out, is found. The distribution of wealth tends to be very broadly distributed when exchanges are limited, either in amplitude or topologically. Favouring exchanges (and, less surprisingly, increasing taxes) seems to be an efficient way to reduce inequalities.

Sign up for the seminar via StreamYard to receive an invitation link to join the seminar.

If you wish to read the paper, it can be found here.

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