Title :
Wealth inequality and wealth effect
Author :
Weihong Huang ; Yu Zhang
Author_Institution :
Div. of Econ., Nanyang Technol. Univ., Singapore, Singapore
Abstract :
In an artificial financial market without real growth, extreme income inequality produces extreme wealth inequality via accumulation. An agent-based model is built to study to what extent a strong tax policy can affect this process. Wealth effect is defined as a positive impact of current wealth on future wealth growth. When wealth effect exists, the appearance of extreme wealth inequality is inevitable.
Keywords :
multi-agent systems; stock markets; taxation; agent-based model; artificial financial market; extreme income inequality; future wealth growth; tax policy; wealth effect; wealth inequality; Convergence; Economics; Educational institutions; Finance; Games; Investment; Yttrium;
Conference_Titel :
Computational Intelligence for Financial Engineering & Economics (CIFEr), 2104 IEEE Conference on
Conference_Location :
London
DOI :
10.1109/CIFEr.2014.6924104
