Statistical Dynamics of Wealth Inequality in Stochastic Models of Growth

Understanding the statistical dynamics of growth and inequality is a fundamental challenge to ecology society. Recent analyses wealth income in contemporary societies show that economic very dynamic individuals experience substantially different rates over time. However, despite fast growing body evidence for importance fluctuations, we still lack general theory understanding dynamical effects heterogeneneous across population. Here derive correlated heterogeneous populations. We correlations between rate fluctuations at individual level influence aggregate population growth, while only driving on short time scales. also find are much stronger driver long-term than earnings volatility. Our findings critical emergence motivate greater focus properties endogenous origins stochastic environments.