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Ode Models Of Wealth Concentration And Taxation, Bruce Boghosian, Christoph Borgers
Ode Models Of Wealth Concentration And Taxation, Bruce Boghosian, Christoph Borgers
CODEE Journal
We refer to an individual holding a non-negligible fraction of the country’s total wealth as an oligarch. We explain how a model due to Boghosian et al. can be used to explore the effects of taxation on the emergence of oligarchs. The model suggests that oligarchs will emerge when wealth taxation is below a certain threshold, not when it is above the threshold. The underlying mechanism is a transcritical bifurcation. The model also suggests that taxation of income and capital gains alone cannot prevent the emergence of oligarchs. We suggest several opportunities for students to explore modifications of the model.
Find, Process, And Share: An Optimal Control In The Vidale-Wolfe Marketing Model, Michael C. Barg
Find, Process, And Share: An Optimal Control In The Vidale-Wolfe Marketing Model, Michael C. Barg
CODEE Journal
The Vidale-Wolfe marketing model is a first-order, linear, non-homogeneous ordinary differential equation (ODE) where the forcing term is proportional to advertising expenditure. With an initial response in sales as the initial condition, the solution of the initial value problem is straightforward for a first undergraduate ODE course. The model serves as an excellent example of many relevant topics for those students whose interests lie in economics, finance, or marketing. Its inclusion in the curriculum is particularly rewarding at an institution without a physics program. The model is not new, but it was novel to us when a group of students …