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Published on: July 10, 2020
Wealth Rheology
Zdzislaw Burda1, Malgorzata J Krawczyk1, Krzysztof Malarz1
1Faculty of Physics and Applied Computer Science, AGH University of Science and Technology, Mickiewicza 30, PL-30059 Kraków, Poland.
Abstract:
We study wealth rank correlations in a simple model of macroeconomy. To quantify rank correlations between wealth rankings at different times, we use Kendall's τ and Spearman's ρ, Goodman-Kruskal's γ, and the lists' overlap ratio. We show that the dynamics of wealth flow and the speed of reshuffling in the ranking list depend on parameters of the model controlling the wealth exchange rate and the wealth growth volatility. As an example of the rheology of wealth in real data, we analyze the lists of the richest people in Poland, Germany, the USA and the world.
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