What is the affine wealth model?
Wed Sep 02, 2020 · 88 words

Key characteristics of the affine wealth model:

  1. The affine wealth model is agent-based i.e. each person or corporation is an agent.
  2. Wealth distribution arises from pairwise agent transactions e.g. agent A has a transaction with agent B.
  3. Wealth moves when an agent makes a mistake.
  4. The affine wealth model matches empirical data on US wealth distribution.
  5. chi stabilizes the wealth distribution and avoids oligarchy.
  6. zeta results in partial oligarchy.
  7. kappa shifts the wealth distribution downward to model debt.

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See also

  1. Is inequality inevitable?

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