Berlin 2012 – scientific programme

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SOE: Fachverband Physik sozio-ökonomischer Systeme

SOE 21: Economic Models and Evolutionary Game Theory II

SOE 21.6: Talk

Thursday, March 29, 2012, 16:45–17:00, H 0110

Modelling of annual European Union household incomes by using an equilibrium solution of the threshold Fokker-Planck equation — •Maciej Jagielski and Ryszard Kutner — Institute of Experimental Physics, Faculty of Physics, University of Warsaw, Hoża 69, PL-00681 Warszawa, Poland

We derived, in the frame of the threshold nonlinear Langevin dynamics and its threshold Fokker-Planck counterpart, a unified formula for description of the annual income of households, for instance, for the European Union in 2006 and 2008. Our formula is more generic than the well known that of Yakovenko as it is valid (by varying driving parameters) for all society classes, including the high-income class. This single unified formula well describes known stylised income facts. That is, it gives the Boltzmann-Gibbs income distribution for the low-income society class and the weak Pareto law for the middle-income class as it expected, while it predicts (to satisfactory approximation) the Zipf law, as expected, for the high-income class.