Phase Transitions in Economic Inequality:Taxation and Extremal Replacement Dynamics

Fuente: arXiv
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Auteurs principaux: Giordano, Lautaro, Gonçalves, Sebastian, Iglesias, José Roberto, Laguna, María Fabiana
Format: Preprint
Publié: 2026
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author Giordano, Lautaro
Gonçalves, Sebastian
Iglesias, José Roberto
Laguna, María Fabiana
author_facet Giordano, Lautaro
Gonçalves, Sebastian
Iglesias, José Roberto
Laguna, María Fabiana
contents We present a minimal agent-based model of interacting agents characterized by their wealth to study taxation and inequality in a non-conservative economy. Wealth evolves through an extremal stochastic replacement process in which the poorest agent has its wealth replaced by a new random value, financed through a collective taxation mechanism. We explore taxation regimes ranging from regressive to progressive schemes and tune the overall redistribution strength. Under regressive taxation, the system self-organizes into two distinct stationary phases when changing the total tax collected: a non-ergodic, high-inequality regime characterized by wealth condensation in a subset of agents that permanently escape replacement, and a more homogeneous ergodic phase in which all agents participate in the dynamics. Increasing taxes drives an abrupt transition between these phases. The transition is discontinuous and exhibits hysteresis and bistability, consistently detected through the Gini index, the Top $1\%$ wealth share, the entropy, and the Binder cumulant. In contrast, neutral and progressive taxation suppress persistent wealth concentration, preventing the emergence of strongly unequal states and eliminating hysteretic behavior. These results show that minimal stochastic redistribution mechanisms alone can produce discontinuous transitions, metastability, and non-ergodicity, demonstrating that taxation structure can determine the emergence and stability of macroscopic inequality.
format Preprint
id arxiv_https___arxiv_org_abs_2604_28168
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Phase Transitions in Economic Inequality:Taxation and Extremal Replacement Dynamics
Giordano, Lautaro
Gonçalves, Sebastian
Iglesias, José Roberto
Laguna, María Fabiana
Physics and Society
We present a minimal agent-based model of interacting agents characterized by their wealth to study taxation and inequality in a non-conservative economy. Wealth evolves through an extremal stochastic replacement process in which the poorest agent has its wealth replaced by a new random value, financed through a collective taxation mechanism. We explore taxation regimes ranging from regressive to progressive schemes and tune the overall redistribution strength. Under regressive taxation, the system self-organizes into two distinct stationary phases when changing the total tax collected: a non-ergodic, high-inequality regime characterized by wealth condensation in a subset of agents that permanently escape replacement, and a more homogeneous ergodic phase in which all agents participate in the dynamics. Increasing taxes drives an abrupt transition between these phases. The transition is discontinuous and exhibits hysteresis and bistability, consistently detected through the Gini index, the Top $1\%$ wealth share, the entropy, and the Binder cumulant. In contrast, neutral and progressive taxation suppress persistent wealth concentration, preventing the emergence of strongly unequal states and eliminating hysteretic behavior. These results show that minimal stochastic redistribution mechanisms alone can produce discontinuous transitions, metastability, and non-ergodicity, demonstrating that taxation structure can determine the emergence and stability of macroscopic inequality.
title Phase Transitions in Economic Inequality:Taxation and Extremal Replacement Dynamics
topic Physics and Society
url https://arxiv.org/abs/2604.28168