Angle, John
(2011):
*The particle system model of income and wealth more likely to imply an analogue of thermodynamics in social science.*

Preview |
PDF
MPRA_paper_28864.pdf Download (915kB) | Preview |

## Abstract

The Inequality Process (IP) and the Saved Wealth Model (SW) are particle system models of income distribution. The IP’s social science meta-theory requires its stationary distribution to fit the distribution of labor income conditioned on education. The Saved Wealth Model (SW) is an ad hoc modification of the particle system model of the Kinetic Theory of Gases (KTG). The KTG implies the laws of gas thermodynamics. The IP is a particle system similar to the SW and KTG, but less closely related to the KTG than the SW. This paper shows that the IP passes the key empirical test required of it by its social science meta-theory better than the SW. The IP’s advantage increases as the U.S. labor force becomes more educated. The IP is the more likely of the two particle systems to underlie an analogue of gas thermodynamics in social science as the KTG underlies gas thermodynamics.

Item Type: | MPRA Paper |
---|---|

Original Title: | The particle system model of income and wealth more likely to imply an analogue of thermodynamics in social science |

English Title: | The particle system model of income and wealth more likely to imply an analogue of thermodynamics in social science |

Language: | English |

Keywords: | Inequality Process; Kinetic Theory of Gases; labor income distribution; particle system; Saved Wealth Model, social science analogue of thermodynamics |

Subjects: | D - Microeconomics > D0 - General > D03 - Behavioral Microeconomics: Underlying Principles D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General |

Item ID: | 28864 |

Depositing User: | John Angle |

Date Deposited: | 20 Feb 2011 20:22 |

Last Modified: | 28 Sep 2019 22:51 |

References: | Angle, John. 1983. "The surplus theory of social stratification and the size distribution of personal wealth." 1983 Proceedings of the American Statistical Association, Social Statistics Section. Pp. 395 400. Alexandria, VA: American Statistical Association. _____. 1986. "The surplus theory of social stratification and the size distribution of Personal Wealth." Social Forces 65:293 326. _____. 1990. "A stochastic interacting particle system model of the size distribution of wealth and income." 1990 Proceedings of the American Statistical Association, Social Statistics Section. Pp. 279 284. Alexandria, VA: American Statistical Association. _____, 1992. "The Inequality Process and the distribution of income to blacks and whites". Journal of Mathematical Sociology 17:77 98. _____. 1993. “Deriving the size distribution of personal wealth from ‘the rich get richer, the poor get poorer’ “. Journal of Mathematical Sociology 18:27-46. _____. 1996. "How the gamma law of income distribution appears invariant under aggregation". Journal of Mathematical Sociology. 21:325-358. _____. 1997. "A theory of income distribution". 1997 Proceedings of the American Statistical Association, Social Statistics Section. Pp. 388-393. Alexandria, VA: American Statistical Association. _____. 2002. "The statistical signature of pervasive competition on wages and salaries". Journal of Mathematical Sociology. 26:217-270. _____. 2003. "Imitating the salamander: a model of the right tail of the wage distribution truncated by topcoding@. November, 2003 Conference of the Federal Committee on Statistical Methodology, [ http://www.fcsm.gov/events/papers2003.html ]. _____. 2006. “The Inequality Process as a wealth maximizing process”. Physica A 367: 388-414. _____. 2007a. “A mathematical sociologist's tribute to Comte: sociology as science”. Footnotes [monthly newsletter of the American Sociological Association] 35(No. 2, February): 10,11. [ on-line at: http://www2.asanet.org/footnotes/feb07/fn9.html . Its web-log is on-line at http://members.asanet.org/Forums/view_forum.php?id=11 . _____. 2007b. “The Macro Model of the Inequality Process and The Surging Relative Frequency of Large Wage Incomes”. Pp. 171-196 in A. Chatterjee and B.K. Chakrabarti, (eds.), The Econophysics of Markets and Networks (Proceedings of the Econophys Kolkata III Conference, March 2007). Milan: Springer. _____. 2009a. "Two similar particle systems of labor income distribution conditioned on education". In JSM Proceedings, Business and Economics Statistics Sections. Pp. 1003-1017. CD-ROM. Alexandria, VA: American Statistical Association. _____, François Nielsen, and Enrico Scalas. 2009b. “The Kuznets Curve and the Inequality Process”. In Banasri Basu, Bikas K. Chakrabarti, Satya R. Chakravarty, Kausik Gangopadhyay, editors, Econophysics and Economics of Games, Social Choices and Quantitative Techniques. Milan: Springer. Aptech Systems, inc. 2009. GAUSS (Version 9.0): User Guide. Black Diamond, WA: Aptech Systems. Bejan, A. 1997. Advanced Engineering Thermodynamics. Second Edition. New York: Wiley-Interscience. Chakraborti, A., B.K. Chakrabarti. 2000. “Statistical mechanics of money: How saving propensity affects its distribution”. European Physics Journal B: 17: 167- 170. Chatterjee, A., B.K. Chakrabarti, and S. Manna. 2004. “Pareto law in a kinetic model of market with random saving propensity”. Physica A 335: 155-163. Council of Advisers. 2005. Economic Report of the President. Washington, DC: U.S. Government Printing Office. Current Population Surveys, March 1962-2004. [machine readable data files]/ conducted by the Bureau of the Census for the Bureau of Labor Statistics. Washington, DC: U.S. Bureau of the Census [producer and distributor], 1962-2004. Santa Monica, CA: Unicon Research Corporation [producer and distributor of CPS Utilities], 2005. Dragulescu, A. and V.Yakovenko. 2000. “Statistical mechanics of money”. European Physics Journal B 17: 723-729. __________. 2001. “Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States”. Physica A 299: 213-221. Fischer-Cripps, A.C. 2004. The Physics Companion. Bristol and Philadelphia: Institute of Physics Publishing. Gyftopoulos, E.P. and G.P. Beretta. 2005. Thermodynamics: Foundations and Applications. Mineola, New York: Dover. Ispolatov, P. L. Krapivsky, and S. Redner. 1998 “Wealth distributions in asset exchange models,” The European Physical Journal B 2: 267–276. Lenski, G. 1966. Power and Privilege. New York: McGraw-Hill. Lux, Thomas. 2005. “Emergent statistical wealth distributions in simple monetary exchange models: a critical review”.Pp. 51-60 in A. Chatterjee, S. Yarlagadda, and B.K. Chakrabarti, (eds.), Econophysics of Wealth Distributions, (the proceedings volume of the International Workshop on the Econophysics of Wealth Distributions, March, 2005, Kolkata, India). Milan, Italy: Springer. ___. 2008. “Applications of Statistical Physics in Economics and Finance”. In J. Barkley Rosser Jr., (ed.). Handbook of Research on Complexity. London: Edward Elgar. Nemhauser, George and Laurence Woolsey. 1988. Integer and Combinatorial Optimization. New York: Wiley. Patriarca, M., A. Chakraborti, and K. Kaski. 2004. “A statistical model with a standard gamma distribution”. Physical Review E 70: article # 016104. Patriarca, Marco, Els Heinsalu, and Anirban Chakraborti. 2006. "The ABCD's of statistical many-agent economy models". [ on-line at http://arxiv.org/abs/physics/0611245/ ]. Scalas, Enrico, Mauro Gallegati, Eric Guerci, David Mas, and Allessandra Tedeschi. 2006. "Growth and Allocation of Resources in Economics: The Agent-based Approach". Physica A 370: 86-90. Sinha, Sitabhra, Arnab Chatterjee, Anirban Chakraborti, and Bikas Chakrabarti. 2011. Econophysics. Weinheim: Wiley. Whitney, Charles. 1990. Random Processes in Physical Systems. New York: Wiley, page 220. Yakovenko, V.M. and J. B. Rosser, Jr., "Colloquium: Statistical Mechanics of Money, Wealth, and Income", Reviews of Modern Physics 81, 1703–1725 (2009). [on-line at http://arXiv:0905.1518] |

URI: | https://mpra.ub.uni-muenchen.de/id/eprint/28864 |