Abstract - Wealth & Income Distributions
This paper combines ideas from classical economics and modern finance with the general Lotka-Volterra models
of Levy & Solomon to provide straightforward explanations of wealth and income distributions. Using a simple and realistic
economic formulation, the distributions of both wealth and income are fully explained. Both the power tail and the log-normal
like body are fully captured. It is of note that the full distribution, including the power law tail, is created via the use
of absolutely identical agents. It is further demonstrated that a simple scheme of compulsory saving could eliminate poverty
at little cost to the taxpayer.