Authors: Marco Ranaldi

Institution: Stone Center Working Paper Series. no. 62

Date: February 2023 (Revised August 2023)

Abstract: 

This paper uses fractal mathematics to describe the distribution of income among individuals. It shows the existence of a stochastic fractal relationship between a country’s output and income inequality: the higher the level of income inequality, the lower the country’s output, all else being equal. The framework allows us to isolate the impact of inequality on output from that of average growth.

Link: Fractal Theory of Income Distribution