3 ms·
I believe the original 80/20 pareto principle was one of the first quantified observations of exactly the phenomenon of wealth distribution. So the natural sta
by Enginerrrd 7y ago
I believe the original 80/20 pareto principle was one of the first quantified observations of exactly the phenomenon of wealth distribution.
So the natural stable distribution of that dynamic system is certainly some type of power law, aka Pareto Distribution. It will almost certainly always trend towards such a distribution given its historical efficacy. The question then is, at what alpha value do we achieve some desired outcome?
I like this line of thinking, and I'd like to see GINI index or the Pareto distribution alpha value tested as a predictive economic indicator for things like growth.