{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/the-affine-wealth-model-an-agent-based-model","title":"The Affine Wealth Model: An agent-based model of asset exchange that allows for negative-wealth agents and its empirical validation","arxiv_id":"1604.02370","date":"2018-02-15","proceeding":null,"authors":[],"abstract":"We present a stochastic, agent-based, binary-transaction Asset-Exchange Model\n(AEM) for wealth distribution that allows for agents with negative wealth. This\nmodel retains certain features of prior AEMs such as redistribution and\nwealth-attained advantage, but it also allows for shifts as well as scalings of\nthe agent density function. We derive the Fokker-Planck equation describing its\ntime evolution and we describe its numerical solution, including a methodology\nfor solving the inverse problem of finding the model parameters that best match\nempirical data. Using this methodology, we compare the steady-state solutions\nof the Fokker-Planck equation with data from the United States Survey of\nConsumer Finances over a time period of 27 years. In doing so, we demonstrate\nagreement with empirical data of an average error less than 0.16\\% over this\ntime period. We present the model parameters for the US wealth distribution\ndata as a function of time under the assumption that the distribution responds\nto their variation adiabatically. We argue that the time series of model\nparameters thus obtained provides a valuable new diagnostic tool for analyzing\nwealth inequality.","url_abs":"http://arxiv.org/abs/1604.02370v2","url_pdf":"http://arxiv.org/pdf/1604.02370v2.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"the-affine-wealth-model-an-agent-based-model","repo_url":"https://github.com/UrsZeidler/yard_sale_sim","is_official":0,"mentioned_in_paper":0,"mentioned_in_github":1,"framework":"none","reach":null}],"tasks":[{"task_slug":"diagnostic","task_name":"Diagnostic"},{"task_slug":"time-series-1","task_name":"Time Series"},{"task_slug":"time-series","task_name":"Time Series Analysis"}],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}