Breakdown of the mean-field approximation in a wealth distribution model

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dc.creatorMedo, Matus
dc.date2008-09-24
dc.date2008-11-26
dc.date.accessioned2026-07-07T12:36:44Z
dc.date.available2026-07-07T12:36:44Z
dc.descriptionOne of the key socioeconomic phenomena to explain is the distribution of wealth. Bouchaud and Mézard have proposed an interesting model of economy [Bouchaud and Mézard (2000)] based on trade and investments of agents. In the mean-field approximation, the model produces a stationary wealth distribution with a power-law tail. In this paper we examine characteristic time scales of the model and show that for any finite number of agents, the validity of the mean-field result is time-limited and the model in fact has no stationary wealth distribution. Further analysis suggests that for heterogeneous agents, the limitations are even stronger. We conclude with general implications of the presented results.
dc.description11 pages, 3 figures
dc.identifierhttps://arxiv.org/abs/0809.4139
dc.identifierhttp://arxiv.org/abs/0809.4139
dc.identifierJournal of Statistical Mechanics, P02014 (2009)
dc.identifierdoi:10.1088/1742-5468/2009/02/P02014
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/218197
dc.subjectStatistical Finance
dc.subjectStatistical Mechanics
dc.subjectDynamical Systems
dc.subjectPhysics and Society
dc.subjectGeneral Finance
dc.titleBreakdown of the mean-field approximation in a wealth distribution model
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