Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: The Kinetics of Wealth and the Origin of the Pareto Law   An important class of economic models involve agents whose wealth changes due
to transactions with other agents. Several authors have pointed out an analogy
with kinetic theory, which describes molecules whose momentum and energy
changes due to interactions with other molecules. We pursue this analogy and
derive a Boltzmann equation for the time evolution of the wealth distribution
of a population of agents for the so-called Yard-Sale Model of wealth exchange.
We examine the solutions to this equation by a combination of analytical and
numerical methods, and investigate its long-time limit. We study an important
limit of this equation for small transaction sizes, and derive a partial
integrodifferential equation governing the evolution of the wealth distribution
in a closed economy. We then describe how this model may be extended to include
features such as inflation, production and taxation. In particular, we show
that the model with taxation is capable of explaining the basic features of the
Pareto law, namely a lower cutoff to the wealth density at small values of
wealth, and approximate power-law behavior at large values of wealth.

1
The categories of this paper are: cs
20
The categories of this paper are: acc-phys
35
The categories of this paper are: mtrl-th
31
The categories of this paper are: ao-sci
27
The categories of this paper are: comp-gas
7
The categories of this paper are: hep-th
29
The categories of this paper are: funct-an
19
The categories of this paper are: eess
12
The categories of this paper are: nucl-th
28
The categories of this paper are: alg-geom
36
The categories of this paper are: cmp-lg
8
The categories of this paper are: hep-ex
5
The categories of this paper are: gr-qc
32
The categories of this paper are: atom-ph
2
The categories of this paper are: math
37
The categories of this paper are: supr-con