13 March 2005

EconoPhysics - Why it is hard to share the wealth

An article from New Scientist Breaking News - Why it is hard to share the wealth identifies a group of physicists who are building new models based on simple physical laws to understand wealth distribution.

"Economists will join physicists to discuss these issues next week in Kolkata, India, at the first ever conference on the "econophysics" of wealth distribution. "We are interested in understanding whether there is some kind of social injustice behind this skewed distribution," says Sudhakar Yarlagadda of the Saha Institute of Nuclear Physics (SINP) in Kolkata."

"While economists' models traditionally regard humans as rational beings who always make intelligent decisions, econophysicists argue that in large systems the behaviour of each individual is influenced by so many factors that the net result is random, so it makes sense to treat people like atoms in a gas."

The article discusses a few models and the roles they could play informing policy.

Saving seems to be the key to accumulating wealth.

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