Anomaly, class division, and decoupling in income dynamics
Phys. Rev. E 113, 054305 – Published 12 May, 2026
DOI: https://doi.org/10.1103/66j8-zpyg
Abstract
Economic inequality emerges from the interplay between regional growth-rate differences and the interaction network that couples regions. We propose a minimal income-dynamics model, where heterogeneity is governed by growth-rate assortativity and regional concentration , allowing us to quantify the spatiotemporal patterns of empirically observed log-income distributions. To systematically analyze these patterns, we derive closed-form approximations for the Hellinger distance and the Gini index in limiting configurations. Our findings highlight the spatial segregation of growth rates as a key driver of economic class division and demonstrate how small-world shortcuts in the underlying network can disrupt this segregation. Finally, our framework provides a robust explanation for the bimodality and strong regional correlations found in global income distributions.