Simulate population wealth over time


Suppose you're given the following information about a population and its wealth distribution:

  • Population size: 2500
  • Mean income (in USD, thousands): 50
  • Standard deviation of income (in USD, thousands): 12.5
  • The population wealth is initially normally distributed

Additionally, you're told that economic transactions occur randomly between two individuals in the population. In a transaction, two parties come together and there is an exchange of wealth. For the purposes of this question, the transactions can be modeled in the following way:

  • Two individuals come together at random
  • When they interact, their wealth is put into a pot, and is then split randomly and uniformly between the two parties

Given this information, write a simulation to show how the wealth of the population will change over time. You can simulate 50 time steps (or transactions per individual).


Access restricted

Subscribe to premium account to see the solution.

Get premium now