A Mathematical Model for the Dynamics of Income Distribution in the Presence of Production

Figure 2

The figure refers to the model version (I) with no taxes. The panels (a–c) show the income distributions at time , and . The panels (d–f) show the fraction of population in each income class at time , and . The rounded components of these fractions are, respectively, (0.472, 0.114, 0.064, 0.048, 0.043, 0.044, 0.051, 0.066, 0.100), (0.437, 0.098, 0.061, 0.048, 0.043, 0.043, 0.048, 0.067, 0.156), and (0.403, 0.107, 0.063, 0.050, 0.047, 0.051, 0.061, 0.084, 0.135). The panels (g–i) represent the variation of the fraction of population in the nine income classes at the different times specified in the captions. Panel (j) displays the solutions in ; panel (k) displays the behaviour of the Gini index in the same interval of time. (a) At time . (b) At time . (c) At time . (d) . (e) . (f) . (g) . (h) . (i) . (j) The solutions in . (k) The Gini index in .

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(b)

(c)

(d)

(e)

(f)

(g)

(h)

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(k)