Entropy, directionality theory and the evolution of income inequality

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2022
Volume: 198
Issue: C
Pages: 15-43

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A macro-evolutionary theory of income inequality is proposed that is based on a society’s dynamic income generating process. Two types of processes are distinguished, namely dispersing and concentrating ones. A basic result shows that dispersing processes provide a selective advantage for more balanced and mutualistic interaction; whereas concentrating ones favor weaker, less balanced and less mutualistic interaction. We also show that societies with more balanced and mutualistic interaction induce more income equality and a non-stratified society, while less balanced and less mutualistic ones induce more inequality and a possibly stratified society. Also, more equal societies are more resilient in the sense of being quicker to recover from shocks and return to steady state than less equal ones. Stylized examples of pre-modern and modern societies are briefly discussed.

Technical Details

RePEc Handle
repec:eee:jeborg:v:198:y:2022:i:c:p:15-43
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25