Economic Inequality as a Statistical Outcome
PDF

Keywords

Economic inequality
Gini index
Relative poverty
Pareto law.

How to Cite

KAFRI, O., & FISHOF, E. (2016). Economic Inequality as a Statistical Outcome. Journal of Economics Bibliography, 3(4), 570–576. https://doi.org/10.1453/jeb.v3i4.1004

Abstract

Abstract. We argue that the economic inequality which is found in the OECD countries and in the salaries of the top executives’ in the Fortune 100 companies are merely an equilibrium statistical outcome, similar to that of the energy distribution among photons in a blackbody. When we treat the photons as people, the radiation modes asocial rank and the photons’ energy as wealth; we obtain for the energy distribution among photons: the Gini index, the ratio between rich and poor, the relative poverty, the part of the property held by the upper percentiles, the salaries of CEO's, very similar values to the corresponding numbers of the OECD counties and Fortune 100 companies.

Keywords. Economic inequality, Gini index, Relative poverty, Pareto law.

JEL. C62.

https://doi.org/10.1453/jeb.v3i4.1004
PDF

References

Ball, P. (2004). The physical modeling of human social systems - A Review, ComPlexUs, 1, 190-206. doi. 10.1159/000082449

Dragulescu, A. & Yakovenko, V.M. (2000). Statistical Mechanics of Money, European Physical Journal, 17, 723-729. doi. 10.1007/s100510070114

Gabarix, X. (1999). Zipf's law for cities: An Explanation, The Quarterly Journal of Economics. 114(3), 739-767. doi. 10.1162/003355399556133

Kafri, O., & Kafri, H. (2013) Entropy - God’s dice game. CreateSpace, pp. 154-157.

Kafri, O. (2014). Money, information and heat in networks dynamics, Mathematical Finance Letters 4, 1-11.

Kafri, O. (2016). A novel approach to probability, Advances in Pure Mathematics, 6, 201-211. doi. 10.4236/apm.2016.64017

Ksenzhek, O., & Petrova S. (2008) Inequality and economic efficiency of society through the prism of thermodynamics, Hungarian Electronic Journal Economics, Manuscript No. ECO-080111-A.

Murtin, F., & d'Ercole, M.M. (2015). Household wealth inequality across OECD countries: New OECD evidence, OECD Statistic Brief, No.21.

Planck, M. (1901) On the law of distribution of energy in the normal spectrum, Annalen der Physik, 4, 553-562.

Zipf, G.K. (1949). Human Behavior and the Principle of Least-Effort, Addison-Wesley.

Creative Commons License
This article licensed under Creative Commons Attribution-NonCommercial license (4.0)

Downloads

Download data is not yet available.