Abstract
The Bennati-Drăgulescu-Yakovenko (BDY) game is an agent-based simple exchange game that models a basic economic system. The BDY game results in the agents' wealth following a Boltzmann-Gibbs distribution. In other words, the result of the game is many "poor" agents and few "wealthy" agents. In this paper, we apply several tax and redistribution models to study their effect on the population's wealth distribution by computing the resulting Gini coefficient of the system. We find that income taxes, both flat and progressive, that evenly redistributed taxed monies do little to change the Gini coefficient from the Boltzmann-Gibbs distribution. However, income taxes that are redistributed to the poorest agents can significantly lower the Gini coefficient, resulting in a more evenly distributed wealth distribution. Furthermore, we find that a very small wealth tax can lead to significant decreases in the Gini coefficient.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Chaos: An Interdisciplinary Journal of Nonlinear Science
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
