Economics and Finance


Demonstrating Lorenz Curve Distribution and Increasing Gini Coefficient with the Iterating (Koch Snowflake) Fractal Attractor.

Authors: Blair D. Macdonald

Global income has increased exponentially over the last two hundred years; while, and at the same time respective Gini coefficients have also increased: this investigation tested whether this pattern is a property of the mathematical geometry termed a fractal attractor. The Koch Snowflake fractal was selected and inverted to best model economic production and growth: all triangle area sizes in the fractal grew with iteration-time from an arbitrary size – growing the total set. Area of triangle the ‘bits’ represented wealth. Kinematic analysis – velocity and acceleration – was undertaken, and it was noted growing triangles propagate in a sinusoidal spiral. Using Lorenz curve and Gini methods, bit size distribution – for each iteration-time – was graphed. The curves produced matched the regular Lorenz curve shape and expanded out to the right with fractal growth – increasing the corresponding Gini coefficients: contradicting Kuznets cycles. The ‘gap’ between iteration triangle sizes (wealth) was found to accelerate apart, just as it is conjectured to do so in reality. It was concluded the wealth (and income) Lorenz distribution – along with acceleration properties – is an aspect of the fractal. Form and change of the Lorenz curve are inextricably linked to the growth and development of a fractal attractor; and from this – given real economic data – it can be deduced an economy – whether cultural or not – behaves as a fractal and can be explained as a fractal. Questions of the discrete and wave properties and the accelerated expansion – similar to that of trees and the conjectured growth of universe at large – of the fractal growth, were discussed.

Comments: 34 Pages. To change author to Blair D. Macdonald from Blair Macdonald

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Submission history

[v1] 2015-05-17 09:14:57
[v2] 2015-10-13 14:24:09
[v3] 2015-10-14 02:14:44
[v4] 2015-10-30 06:29:03
[v5] 2015-12-13 12:38:24
[v6] 2017-03-05 13:32:37

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