Closed-form expressions for the steady-state wealth distribution in a kinetic model of gambling

Authors

Jane Bernadette Denise Martin Garcia ⋅ PH National Institute of Physics, University of the Philippines Diliman
Jose Perico Esguerra ⋅ PH National Institute of Physics, University of the Philippines Diliman

Abstract

We have successfully formulated a gamma-like closed-form expression for the steady-state wealth distribution in a kinetic model of gambling from a finite number of its moments as generated from a recursion relation derived from an arbitrary exchange distribution which is normalized in the interval (0,1). The obtained steady-state wealth distribution functions are qualitatively similar with those existing in literature. We have shown the utility of our proposed model by the ability to easily calibrate the parameters in the model to accurately represent wealth distributions existing in real economies.

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Issue

2017: Proceedings of the 35th Samahang Pisika ng Pilipinas Physics Conference

Opportunities and challenges in physics collaboration and research
7-10 June 2017, Cebu City

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Article ID

SPP-2017-3C-01

Section

Theoretical and Mathematical Physics

Published

2017-05-09

How to Cite

[1]

JBDM Garcia and JP Esguerra, Closed-form expressions for the steady-state wealth distribution in a kinetic model of gambling, Proceedings of the Samahang Pisika ng Pilipinas 35, SPP-2017-3C-01 (2017). URL: https://proceedings.spp-online.org/article/view/SPP-2017-3C-01.