English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

We address the issue of the dynamics of wealth accumulation and economiccrisis triggered by extreme inequality, attempting to stick to most possiblyintrinsic assumptions. Our general framework is that of pure or modifiedmultiplicative processes, basically geometric Brownian motions. In contrastwith the usual approach of injecting into such stochastic agent models eitherspecific, idiosyncratic internal nonlinear interaction patterns, or macroscopicdisruptive features, we propose a dynamic inequality model where the attainmentof a sizable fraction of the total wealth by very few agents induces a crisisregime with strong intermittency, the explicit coupling between the richest andthe rest being a mere normalization mechanism, hence with minimal extrinsicassumptions. The model thus harnesses the recognized lack of ergodicity ofgeometric Brownian motions. It also provides a statistical intuition to theconsequences of Thomas Piketty's recent "$r>g$" (return rate $>$ growth rate)paradigmatic analysis of very-long-term wealth trends. We suggest that the"water-divide" of wealth flow may define effective classes, making an objectiveentry point to calibrate the model. Consistently, we check that a tax mechanismassociated to a few percent relative bias on elementary daily transactions isable to slow or stop the build-up of large wealth. When extreme fluctuationsare tamed down to a stationary regime with sizable but steadier inequalities,it should still offer opportunities to study the dynamics of crisis and theinner effective classes induced through external or internal factors.

Simple wealth distribution model causing inequality-induced crisis without external shocks