Biondi, Y;
Righi, S;
(2019)
Inequality, mobility and the financial accumulation process: a computational economic analysis.
Journal of Economic Interaction and Coordination
, 14
(1)
pp. 93-119.
10.1007/s11403-019-00236-7.
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Abstract
Our computational economic analysis investigates the relationship between inequality, mobility and the financial accumulation process. Extending the baseline model by Levy et al., we characterise the economic process through stylised return structures generating alternative evolutions of income and wealth through time. First, we explore the limited heuristic contribution of one and two-factors models comprising one single stock (capital wealth) and one single flow factor (labour) as pure drivers of income and wealth generation and allocation over time. Second, we introduce heuristic modes of taxation in line with the baseline approach. Our computational economic analysis corroborates that the financial accumulation process featuring compound returns plays a significant role as source of inequality, while institutional arrangements including taxation play a significant role in framing and shaping the aggregate economic process that evolves over socioeconomic space and time.
| Type: | Article |
|---|---|
| Title: | Inequality, mobility and the financial accumulation process: a computational economic analysis |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s11403-019-00236-7 |
| Publisher version: | https://doi.org/10.1007/s11403-019-00236-7 |
| Language: | English |
| Additional information: | This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. |
| Keywords: | Inequality, Economic process, Compound interest, Simple interest, Taxation, Computational economics |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10066646 |
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