Gaussian Noise Effects on the Evolution of Wealth in a Closed System of n-Economies

Abstract

Based on the stochastic model proposed by Patriarca-Kaski-Chakraborti that describes the exchange of wealth between $n$ economic agents, we analyze the evolution of the corresponding economies under the assumption of a Gaussian background, modeling the exchange parameter $\epsilon$. We demonstrate, that within Gaussian noise, the variance of the resulting wealth distribution will significantly decrease, and the equilibrium state is reached faster than in the case of a uniform distributed $\epsilon$ parameter. Also, we show that the system with Gaussian noise strongly resembles a deterministic system which is solved by means of a Z-Transform based technique.