A Simple Probabilistic Approach of the Yard-Sale Model

Christophe Chorro (1)

1 CES - Centre d'économie de la Sorbonne

We propose in the present paper a probabilistic approach of the so-called Hayes (2002) Yard-Sale model using classical diffusion approximations of Markov chains. We partly recover, at the very least for small and high frequency transactions, recent results of Boghosian (2014) and Boghosian et al. (2015) concerning both wealth condensation in the absence of redistribution mechanisms and steady state distributions when a uniform capital taxation is imposed.

Mots clés: Impact of taxation; Diffusion approximations; Wealth distribution; Yard-Sale model

Domaines: Economies et finances

Christophe Chorro. A Simple Probabilistic Approach of the Yard-Sale Model. 2015. ⟨halshs-01222500⟩