5,305 research outputs found
Exponential wealth distribution in a random market. A rigorous explanation
In simulations of some economic gas-like models, the asymptotic regime shows
an exponential wealth distribution, independently of the initial wealth
distribution given to the system. The appearance of this statistical
equilibrium for this type of gas-like models is explained in a rigorous
analytical way.Comment: 9 pages, 4 figure
Exponential wealth distribution: a new approach from functional iteration theory
Exponential distribution is ubiquitous in the framework of multi-agent
systems. Usually, it appears as an equilibrium state in the asymptotic time
evolution of statistical systems. It has been explained from very different
perspectives. In statistical physics, it is obtained from the principle of
maximum entropy. In the same context, it can also be derived without any
consideration about information theory, only from geometrical arguments under
the hypothesis of equiprobability in phase space. Also, several multi-agent
economic models based on mappings, with random, deterministic or chaotic
interactions, can give rise to the asymptotic appearance of the exponential
wealth distribution. An alternative approach to this problem in the framework
of iterations in the space of distributions has been recently presented.
Concretely, the new iteration given by . It is found that the
exponential distribution is a stable fixed point of the former functional
iteration equation. From this point of view, it is easily understood why the
exponential wealth distribution (or by extension, other kind of distributions)
is asymptotically obtained in different multi-agent economic models.Comment: 6 pages, 5 figure
Regulatory governance and sector performance : methodology and evaluation for Electricity distribution in Latin America
This paper contributes to the literature that explores the link between regulatory governance and sector performance. The paper develops an index of regulatory governance and estimates its impact on sector performance, showing that indeed regulation and its governance matter. The authors use two unique databases: (i) the World Bank Performance Database, which contains detailed annual data for 250 private and public electricity companies in Latin America and the Caribbean; and (ii) the Electricity Regulatory Governance Database, which contains data on several aspects of the governance of electricity agencies in the region. The authors run different models to explain the impacts of change in ownership and different characteristics of the regulatory agency on the performance of the utilities. The results suggest that the mere existence of a regulatory agency, regardless of the utilities'ownership, has a significant impact on performance. Furthermore, after controlling for the existence of a regulatory agency, the ownership dummies are still significant and with the expected signs. The authors propose an experience measure in order to identify the gradual impact of the regulatory agency on utility performance. The results confirm this hypothesis. In addition, the paper explores two different measures of governance, an aggregate measure of regulatory governance, and an index based on principal components, including autonomy, transparency, and accountability. The findings show that the governance of regulatory agencies matters and has significant effects on performance.National Governance,Infrastructure Regulation,Governance Indicators,Banks&Banking Reform,Emerging Markets
Trade Costs and Job Flows: Evidence from Establishment-Level Data
We present evidence of the impact of input and output trade liberalization on establishment-level job flows. Using a longitudinal database containing the universe of manufacturing establishments in California from 1992 to 2004, we find that a decline in input or output trade costs causes job destruction in the least productive establishments, job creation in the most productive establishments, and an increase in the death likelihood of the least productive establishments. The evidence is consistent with predictions of models of trade with heterogeneous firms. We also show that input trade liberalization has larger effects on establishment-level job flows than output trade liberalization.Heterogeneous firms; Job flows; Trade costs
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