A two factor model of income distribution dynamics

TL;DR: In this article, the relationship between inequality, mobility and the financial accumulation process is investigated, and the authors characterize the economic process trough stylized return structures generating alternative evolutions of income and wealth through historical time.

TL;DR: In this article, the authors estimate capital and labor income Pareto exponents across 475 country-year observations that span 52 countries over half a century (1967-2018) and find that capital income is more unequally distributed than labor income in the tail.

TL;DR: In this paper, an agent-based macroeconomic model is proposed, in which income distribution and wealth accumulation depend on the role that agents play in productive activities, that is capitalists or workers.

TL;DR: In this article, the authors present an exchange model where the goal is not only to avoid condensation but also to reduce the inequality; to carry out this objective the choice of interacting agents is not at random, but follows an extremal dynamics regulated by the wealth of the agent.

Abstract: The classic text for understanding complex statistical probability An Introduction to Probability Theory and Its Applications offers comprehensive explanations to complex statistical problems. Delving deep into densities and distributions while relating critical formulas, processes and approaches, this rigorous text provides a solid grounding in probability with practice problems throughout. Heavy on application without sacrificing theory, the discussion takes the time to explain difficult topics and how to use them. This new second edition includes new material related to the substitution of probabilistic arguments for combinatorial artifices as well as new sections on branching processes, Markov chains, and the DeMoivreLaplace theorem.

TL;DR: The authors showed that the large shocks that capital owners experienced during the Great Depression and World War II have had a permanent effect on top capital incomes and argued that steep progressive income and estate taxation may have prevented large fortunes from fully recovering from these shocks.

TL;DR: In this paper, the authors analyse a class of distribution functions that appear in a wide range of empirical data-particularly data describing sociological, biological and economic phenomena-and look for an explanation of the observed close similarities among the five classes of distributions listed above.

TL;DR: In this paper, a calibrated version of the stochastic growth model with partially uninsurable idiosyncratic risk and movements in aggregate productivity is used to analyze how movements in the distribution of income and wealth affect the macroeconomy.