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DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
BlairD.Macdonald
Abstract
Globalincomehasincreasedexponentiallyoverthelasttwohundredyears;while,and
atthesametimerespectiveGinicoefficientshavealsoincreased:thisinvestigation
testedwhetherthispatternisapropertyofthemathematicalgeometrytermedafractal
attractor.TheKochSnowflakefractalwasselectedandinvertedtobestmodel
economicproductionandgrowth:alltriangleareasizesinthefractalgrewwith
iteration-timefromanarbitrarysize–growingthetotalset.Areaoftrianglethe‘bits’
representedwealth.Kinematicanalysis–velocityandacceleration–wasundertaken,
anditwasnotedgrowingtrianglespropagateinasinusoidalspiral.UsingLorenzcurve
andGinimethods,bitsizedistribution–foreachiteration-time–wasgraphed.The
curvesproducedmatchedtheregularLorenzcurveshapeandexpandedouttotheright
withfractalgrowth–increasingthecorrespondingGinicoefficients:contradicting
Kuznetscycles.The‘gap’betweeniterationtrianglesizes(wealth)wasfoundto
accelerateapart,justasitisconjecturedtodosoinreality.Itwasconcludedthewealth
(andincome)Lorenzdistribution–alongwithaccelerationproperties–isanaspectof
thefractal.FormandchangeoftheLorenzcurveareinextricablylinkedtothegrowth
anddevelopmentofafractalattractor;andfromthis–givenrealeconomicdata–itcan
bededucedaneconomy–whetherculturalornot–behavesasafractalandcanbe
explainedasafractal.Questionsofthediscreteandwavepropertiesandthe
acceleratedexpansion–similartothatoftreesandtheconjecturedgrowthofuniverse
atlarge–ofthefractalgrowth,werediscussed.
Keywords:
Fractalgeometry,Lorenzcurve,GiniCoefficient,Wealthdistribution
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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1 INTRODUCTION
Theincreasingspreadofincomeandwealthdistribution–anditspossibleacceleration
(Piketty2016)–haslongbeenatthecentreofcontroversyfrombothsidesofthe
economic–andpolitical–spectrum.Thedisparityisalmostalwayspresentedasa
negativeconsequenceofthe‘free’marketandofeconomicgrowthandviewedas‘a
wrong’:somethingthatshouldbecontrolledorstemmed.TheOECDevenpurportitto
bethecauseof‘fallsineconomicsgrowth’(OECD2014).Whatifcouldbeshowntobe
anaspectofagreatermathematicalgeometry:revealingittobeauniversal,natural
phenomenon–apropertyofnature,andindeed‘themarket’itself?Wouldthisrelieve
usofourconcernsandmanyconjectures,muchlikeKepler’sellipticalgeometrydidin
the17thCentaury–completingtheproblemofplanetaryorbits?
Thereisageometrythatmaystandasacandidate,offeringsimilarpotentialtothe
ellipse,itis‘thefractal’andfractalgeometry.Developedduringthelastdecadesofthe
19thCentenary:fractalsgenerallyknowntobeoneofthebestwaystodescribenature.
Thefatheroffractalgeometry,BenoitMandelbrot(1924-1910)–interestingly–saidof
himselftobe‘awouldbeKepler–ofcomplexity’(Wolfram2012).Inhisearlywork
beforefractalsMandelbrotwroteonpowerslawsandshowedtheincomeandwealth
disparitytofollowatypical(‘natural’)Paretopowerlawpattern(B.Mandelbrot1960,
TheGuardian2011),andinhisoriginalworkonfractals,heusedthisgeometryto
describetheshapeandbehaviourofmarketpricesthroughtime(B.B.Mandelbrot
2008).InthispaperIwouldliketocontinuehiswork,andshowthatnotonlyareprices
fractal,butindeedincomedistributionistoo,andbothareaspectsofa(greater)fractal
–oneweterm‘amarket’.Ibelievethereisafundamentalconnectionbetweenpower
laws,fractalsandincomeandwealthdistribution.
Toinvestigatetheabove,anemergentfractalattractorwastestedtowhetherit
producesaLorenzcurveandrespectiveGinicoefficient–andifso,dotheychangewith
growthandwithtime.Isinequalityinextricablylinkedtogrowth?Thehypothesisof
thisstudywasyestheyarelinked:inequalityisanaspectorpropertyofthefractal,and
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
BlairD.Macdonald
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aneconomy–whetherculturalornot–isafractalphenomenon,bestdescribedby
fractalgeometry.
1.1 TheLorenzCurve
IncomeandwealthdistributionwasfirstrepresentedgraphicallybyM.O.Lorenz’s
1905andthecurveheproduced–theLorenzcurve–namedafterhim(Lorenz1905).
Showninfigure1below:thepercentageofhouseholdsisonthex-axis,andthe
percentageofincomeorwealthonthey-axis.TheLorenzcurveshowsthedistribution
ofindividuals’income(orwealth)foragivenpopulation.TheLorenzcurvealwaysfalls
belowtheline‘perfectequality’(alineofequaldistributionthroughoutthepopulation)
andtheGinicoefficient(termed‘Ginis’forshort)tellstheratiobetweentheLorenz
curveandthelineofequality(areaA),andthetotal(triangle)areaunderthelineof
equality(areasAandB).
Figure 1. Lorenz Diagram. The graph shows that the Gini coefficient is equal to the area marked A divided by
the sum of the areas marked A and B. that is, Gini = A / (A + B). It is also equal to 2*A due to the fact
that A + B = 0.5 (since the axes scale from 0 to 1)(“Gini Coefficient” 2015).
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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Lorenzdistributionhasalreadybeenshowntobeuniversalorfractal:itisa‘natural’
scaleinvariantpropertyobservedinanywealthorincomedistributionofany
population–whetherculturalornot(DamgaardandWeiner2000),andisasrelevant
tothenaturalsciencesasitistotheclassicaleconomics.EcologistGeeratJ.Vermeij
remarks:“Oneofthemostpervasiveandfar-reachingrealitiesineconomicsystemsis
inequality,thetendencyforonepartyinvolvedinaninteractionoverresourcestogain
more,orless,thanitsrival.”(Vermeij2009)
1.2 HighWealthGiniandExponentialIncomeGrowth
Wealthisastockconceptandincomeaflow,andbothmaybearguedtobecausalto
eachother:incomecreateswealth;wealthcreatesincome.Parkinexplainsthe
differencebetweenthewealthLorenzandtheincomeLorenzcurvesisthewealth
excludeshumancapital:‘wealthandincomearejustdifferentwaysoflookingatthe
samething…becausethenationalsurveyofwealthexcludeshumancapital,income
distributionisamoreaccuratemeasureofincomeinequality’(Parkin,Powell,and
Matthews2008).Notwithstandingthis,bothwealthandincomeproducecomparable
Lorenzcurves–evenifthewealthGinicoefficientsarehigherthanincome.Inthis
studythefocuswasonwealthdistribution–duedirectlytothe‘stock’natureofthe
fractal:forthisreason,therelationshipbetweenwealthandincomeisassumed
inextricableandequivalent.
Realdatashowslocal–bycountry–wealthGinisincreaseonlytobecurtailedbya
possible‘Kuznetseffect’–whereGinisriseandthenarefallwitheconomicgrowthand
developmentdueintervention–orasMilanovicpositsit,technology,opennessand
politics(TOP)(Milanovic2016b).ForAmericaalone,Ginishaveincreased(Fortune
2015),andthewealthproportionof‘the1%’alsoincreasedinAmericafrom1980to
2000(Domhof2016)–aperiodofmarketliberalisation.Thisincreaseisalsoevidentin
Chinafromtheperiod1967to2007–seeappendixfigure4below.Mostother
developednationshavealsohadtheirGiniincreaseinrecentyears(“Distributionof
Wealth”2015)asshownbelowinappendixfigure5.
IfMilanovicisright,andtheupanddownGinis–socalledKznetwaves–persist,what
thenistheircause?ThisistoFerreira‘thegreatepistemologicalchallengeof
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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inequalityanalysis’(Ferreira2016).Atleastforthe‘ups’,canthefractaloffera
solution?
Onlongtermincomegrowth:dataforthelasttwoCenturiesshowglobalnational
incomeincreasedexponentially,whilecorrespondingincomeGinisoverthesame
periodalsoshowincrease(thoughatadecreasingrate)–figure2below(Milanovic
2009).Assumingincomeandwealtharethesame,doesthisexponentialgrowthof
incomeandconcurrentincreasingGinicoefficientsconcurwiththefractal
development?
Figure 2 Global Income and Gini Coefficients for last 2 Centuries. Over the last two centuries global income
growth (green) per capita has been exponential and respective Gini coefficient (red) increasing (at a decreasing
rate). (Milanovic 2009)
1.3 TheClassicalFractal
Fractals–alsodescribedasL-systems–areemergentobjectsthatdevelopand(or)
growwiththeiterationofasimplerule.Theypossessself-similarityatallscalesand
canbeobservedasbeingregularbutirregular(samebutdifferent)objects.Theyare
classicallydemonstratedbytheoriginalMandelbrotSet(B.B.Mandelbrot1980),and–
inoneoftheirmostsimplestforms–theKochSnowflake(Figure1below,AandB
respectively).Familiarexamplesoftheminrealityareclouds,waves,coastlinesand
trees.Allfractalshaveadefined‘fractaldimension’.Stewartinhisbookonchaos(and
fractals)‘Goddoesnotplaydice’–said:‘..coastlinesandKochSnowflakesareequally
0
1000
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7000
8000
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1820 1850 1870 1913 1929 1950 1960 1980 2002
Income$
GiniCoe
fficien
t
Year
WorldGinicoefficients
Globalaverageincomepercapita($PPP)
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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rough’(Stewart1997).Indeed,theveryclosefractaldimensionvaluesofboththeKoch
Snowflakeandthecoastlinesofislands(GreatBritain)1.26,andbetween1.15and1.2
respectively–standsastestamentoftheirpowertobestmodelnatureandreality.
Figure1Bbelowshowstheclassicalviewoffractalgrowth(ordevelopment)–
achievedbytheiterationofasimplerule,byaddingmore(triangle)bits–of
diminishingsize–totheprevioustriangle,originatingfromaninitial(iteration0)bit–
alsoknownasthe‘axiom’inL-systemtheory.Thesnowflakeshapeisformedatand
around5or6iterations;fromthispointon–totheobserver–itnolongerchanges
shape.Thisgrowthto‘equilibrium’observationisnotlosttothiseconomist,andwillbe
thesubjectofanotherfutureinvestigation;butitisthecomparisonordistributionof
thesizeoftriangles–fromthesmalltotheoriginallarge–thatisthefocusofthisstudy.
Figure 3. (Classical) Fractals. (A) boundary of the Mandelbrot set; (B) The Koch Snowflake fractal from
iteration-time (t) 0 to 3. Reference: (A) (Prokofiev 2007); (B) (“Koch Snowflake” 2014).
Fractalsarebytheirnaturecomplexobjects–butthispropertyofcomplexityposesa
problem,anditwasforthisreasontheKochSnowflakefractalattractorwaschosenfor
analysis.TheKochSnowflakehasregular-regularityratherthanregular-irregularity(or
complexity).
TestingwasdoneusingstandardLorenzcurveandGinicoefficientmethods.The
distributionoftriangleareasweregraphedandGinicoefficientscalculatedforeach
iterationtimeasthefractalgrew(ordeveloped).
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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Areaofthetrianglebitswasassumedtostandforanindividual’swealth.
1.4 Production,andtheInvertedFractal
To‘produce’aLorenzcurvewithafractalattractor,wefirstneedtodeterminewhatit
meantbyproductionandthusgrowthofthefractal.Whenweattempttodothis,we
findthereisaparadox–therearetwoviewsthatconflictwitheachother:onewhere
theoriginaltrianglebitsizeremainsconstant,andthenewbitsdiminishinsizeasthe
fractaliterates–thisistermed(A)‘aconsumptionperspective’;and(B)whereitisthe
newtrianglebitssizeremainconstant,andallearliertrianglebitsexpandandgrowas
thefractaliterates–termed‘aproductionperspective’.Aistheclassicalview–as
showninfigure3B(andAinfigure4below)andBthe‘inverted’,showninfigure4B.
Bothoftheseviews,AandB,arerelativeviewsofthesameprocess:botharetrue,but
onlyonereallydescribestheproductionandthegrowthfromproduction,andforthis
studyitisassumedtobetheinvertedviewB.
Figure 4. Expansion of the inverted Koch Snowflake fractal (fractspansion). The schematics above
demonstrate fractal development by (A) the classical Snowflake perspective, where the standard sized thatched
(iteration ‘0’) is the focus, and the following triangles diminish in size from colour red iteration 0 to colour purple
iteration 3; and (B) the inverted, fractspanding perspective where the new (thatched) triangle is the focus and
held at standard size while the original red iteration 0 triangle expands in area – as the fractal iterates.
Thereisapracticalreasonforthis:the‘inverted’productiongrowthcanbe‘observed’
inreallifenaturefractals,trees.Withtrees(thusallplants–inprinciple)itisthetrunk
ofthetreethatgrows,andthenewbranchsizethatremainsconstant.Thisisconverse
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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to‘our’staticobservationoftrees,wherethe(larger)constantsizedtrunkisobserved
withdiminishingsizedbranches‘protruding’–selfsimilar–fromit.
1.5 Acceleration
Withinversion(figure4B)itcanbeshownasthefractalgrowslargerandlargerwith
respecttoiterationtime,butasitdoesthedistancebetweencentre-pointsofthe
originalthatchedtriangleandtheolder(fromiteration0toiteration3)accelerate
apart.Tosupportthisconjecture–andtheinversionview–arecentstudyoftreeshas
showntree’sgrowth–andthusallplants–acceleratewithage(Stephensonetal.2014)
–againmatchingthisinversionperspective.Totestandanalysetheconsequencesof
exponential(incomeorwealth)growthandtheaffectof‘groups’kinematicanalysis
wasconductedonthefractal.Ifthefractalbehavesasaneconomyandproducesa
Lorenzcurve,groupswillaccelerateapart.
Therelationshipbetweenthese‘observation’andinverted‘production’viewsofthe
fractal–withreferencetoeconomictheory–mustbeaddressed,butmuchofthisis
outsidethescopeofthisinvestigation,andsoforthepurposesofthisinvestigationthe
fractalwas‘inverted’andanalysed.Itshouldbemadeclear,inversionornot,itisthe
samegeometryanalysed,justwithdifferentperspectives:onefromthetoplooking
down,theotherfromthebottomlookingup.
2 METHODS
Toanalysetheinvertedfractaltwospreadsheetmodelsweredeveloped,andstoredin
arepository:onetoanalysetheinvertedgrowthbehaviouroftheKochSnowflake
fractal(Macdonald2016);andanothertomodeltheLorenzandGinibehaviour
(Macdonald2015).
Tocreateaquantitativedataseriesforanalysis(usedinbothspreadsheetmodels)the
classicalKochSnowflakeareaequationswereadaptedtoinvertthefractal.Adatatable
wasproducedtocalculatetheareagrowthateachandeveryiterationofasingle
triangle.Areawascalculatedfromthefollowingformula(1)measuredinstandard
(arbitrary)centimetreunits(cm)
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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𝐴 =𝑙!√34 (1)
where(A)wastheareaofasingletriangle,andwherelwasthetriangle’sbaselength.
LengthinTable1wassetto15.1967128766173cm-1sotheareaoftheinitial(base)
triangle(i=0)approximatedanarbitraryareaof100cm-2.Toexpandthetrianglewith
iteration(andthusinvertthefractal)thebaselengthwasmultipliedby3(insteadof
dividingitby3asusedintheclassicalsnowflakemethod).Theiteration-time(i)
numberwasplacedinacolumn,followedbythebaselengthoftheequilateraltriangle,
andinthefinalcolumntheformulatocalculatetheareaofthetriangle.Iteration‘0’
referstoapreiterationsize;thefirstposition.Calculationsweremadetothearbitrary
12thiteration,andtheresultsgraphed.
2.1 LorenzCurve
AmethodtoconstructaLorenzcurvebyspeadsheetisdemonstratedby(arnoldhite
2016):thismethodwasfollowed.Atablewascreatedrankingtrianglesbytheirsizeat
eachiterationtime–inascendingorder.Ateachrankedquantitythefollowingwas
calculated:
1. apercentagequantity(Quantity/TotalQuantity)–forthelineofequality;
2. apercentagearea(Area/TotalArea)–fortheLorenzcurve;
3. CumulativepercentageArea;
4. andfinally–forthecalculationoftheGiniCoefficient–theareaunderthe
LorenzCurve.
Toclarify,thefirsttrianglerepresentstheinitialconditionforiteration:itisthefirstindividual.
2.2 GiniCoefficient
AnelementarymethodtocalculatetheGinicoefficientbyspreadsheetisdemonstrated
by(arnoldhite2014)–thismethodwasfollowed.TheGiniCoefficientisacalculatedby
dividingtheareabetweenthelineofequalityandtheLorenzcurve(areaAinfigure1
above)bythetotalareaunderthelineofequality:
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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𝑨(𝑨+ 𝑩).
(2)
SummingalltheareasundertheLorenzCurvegivestheareaofB.
GiniCoefficientswerecalculatedforeachiteration-time,andforeachiteration-timea
newtablewascreated.
2.3 AnalysisofAreaExpansionoftheTotalInvertedFractal
Toanalysethevelocityandaccelerationofexpansionofinvertedfractaltoanobserver
withinthefractalanotherspreadsheetmodelwasdeveloped,andstoredina
repository(Macdonald2016).
Withiterationnewtrianglesare(indiscretequantities)introducedintotheset–atan
exponentialrate.Whiletheareasofnewtrianglesremainconstant,theearliertriangles
expand,andbythisthetotalfractalsetexpands.Tocalculatetheareachangeofatotal
invertedfractal(asititerated),theareaofthesingletriangle(ateachiterationtime)
wasmultipliedbyitscorrespondingquantityoftriangles(ateachiterationtime).
Twodatatables(tables3and4inthe‘invertedfractal’spreadsheetfile)were
developed.Table3columnswerefilledwiththecalculatedtriangleareasateachofthe
correspondingiterationtime–beginningwiththebirthofthetriangleandcontinuing
toiterationten.Intable4,triangleareasoftable3weremultipliedbythenumberof
trianglesintheseriescorrespondingwiththeiriterationtime.
Valuescalculatedintable3and4weretotalledandanalysedinanewtable(table5).
Analysedwere:totalareaexpansionperiteration,expansionratio,expansionvelocity,
expansionacceleration,andexpansionaccelerationratio.Calculationsinthecolumns
usedkinematicequationsdevelopedbelow.
2.4 Kinematics
Classicalphysicsequationswereusedtocalculatevelocityandaccelerationof:the
recedingpoints(table2)andtheincreasingarea(table5).
2.4.1 Velocity
Velocity(v)wascalculatedbythefollowingequation
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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𝒗 =∆𝒅∆𝒊
(3)
whereclassicaltimewasexchangedforiterationtime(i).Velocityismeasuredin
standardunitsperiterationcm-1i-1forrecedingpointsandcm-2i-1forincreasing
area.
2.4.2 Acceleration
Acceleration(a)wascalculatedbythefollowingequation
Accelerationismeasuredinstandardunitsperiterationcm-1i-2andcm-2i-2.
2.5 Velocity-Distance(‘gap’)Diagram
Totestforincreasingwealthvelocityagainstdistance(thegap)betweengroups–
analogisttocosmology’sHubble’sLaw–aHubble‘like’ascattergraphdiagramtitled
the‘Fractal/Hubble-Wealthdiagram’wasconstructedfromtheresultsoftherecession
velocityanddistancecalculations(intable2ofthe‘invertedfractal’spreadsheetfile).
Onthex-axiswasthetotaldistance(notdisplacementfromobserver)oftrianglecentre
pointsateachiterationtimefromi0;andonthey-axistheexpansionvelocityateach
iterationtime.Abestfittinglinearregressionlinewascalculatedandanequation(5)
wasderived
𝒗 = 𝑲𝟎𝑫 (5)
whereK0the(present)Hubble(like)wealthconstant(thegradient),andDthe
distance.
2.6 Acceleration-DistanceDiagram
UsingthesamemethodsasusedtodeveloptheFractal/Hubble-Wealthdiagram(as
describedabovein2.5)anaccelerationvs.distancediagramwascreatedandan
expansionconstantderived.
𝒂 =∆𝒗∆𝒊
(4)
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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2.7 SpiralPropagationthoughTime
Thepropagationoftrianglesinthe(inverted)KochSnowflakefractal,isnotlinearbut
intheformofalogarithmicspiral–asshowninFigure2B(above),andinAppendix
Figure1.Themethodgiventhusfarassumes,andcalculatesthelinearcircumferenceof
thisspiralandnotthetruedisplacement(theradius).Thismethodwasjustifiedby
arguingtherequiredradius(ordisplacement)ofthelogarithmicspiralcalculationwas
toocomplextocalculate,(andbeyondthescopeofthisinvestigation),andthat
expansioninferencesfrominvertedfractalcouldbemadefromthelinear
circumferencealone.Thisbeensaid,aspiralmodelwascreatedindependently,and
radiimeasuredtotestwhetherspiralresultswereconsistentwiththelinearresultsin
theinvestigation.MeasurementsweremadeusingTI–Nspire™geometricsoftware
(seeAppendixIFigure1).Displacements,andthederivedHubblediagramfromthis
radiusmodelwereexpectedtoshowsignificantlylowervaluesthantheabove
(calculated)circumferencenon-vectormethod,butnonethelesssharethesame
(exponential)behaviour.AppendixFigure1showsinthedistancebetweencentre
points,andinbluethedisplacement.
SeeAppendixFigures1,and2,andTable1forresults.
3 RESULTS
Figure5belowisacompositediagramofLorenzcurvesfromiteration-time1(theline
ofperfectequality)toiterationtime5.Allcurvesarederivedfromthespreadsheet
model.
3.1 LorenzCurves
Fromfigure5below:asthefractaliterated,thederivedLorenzcurvesexpendedoutor
shiftedtotherightofthe‘lineofequality’.Atiteration-time1–thelineofequality–
distributionishomogenous;onetrianglewithonearea.Withiteration-timeandgrowth
theseconditerationtime(i=2)Lorenzshowed25%oftheareaisfoundin75%ofthe
triangles;andconverselytheremaining75%oftheareaisfoundintheremaining25%
ofthetriangles.Atiteration-time5(i=5)thisdistributionhasexpandedandshowsonly
asmallpercentageofthetrianglesaccountforsome99%ofthearea.
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Figure 5. Fractal (Koch Snowflake) Lorenz Curves Expansion. Lorenz Curves are produced for the Koch
Snowflake fractal from iteration (i) 2 to iteration 5. The Lorenz curve expands out to the right with growth and
time as a result of increasing spread and quantity of triangles sizes.
3.2 GiniCoefficient
Ginicoefficientsateachiterationareshownbelowinfigure6.TheGinicoefficientincreasedatadecreasingrate–approximatingavalueof1–withiteration-time.
Figure 6. Koch Snowflake Gini Coefficient by Iteration-time (i). The Gini coefficient is a measure of the area
between the line of equality and the Lorenz curve in relation to an area of perfect equality. As the (Koch
Snowflake) fractal grows – and/or develops – with iteration time, the Gini Coefficient increases.
0%
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AreaofTria
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LineofEquality
i=2
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fficien
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3.3 ExpansionofInitialTriangle
TheareaoftheinitialtriangleoftheinvertedKochSnowflakefractalincreasedexponentially–shownhereinFigure7.
Figure 7. Area Expansion of a single triangle. iteration time (i). cm = centimetres.
Thisexpansionwithrespecttoiterationtimeiswrittenas
𝑨 = 𝟏𝒆𝟐.𝟏𝟗𝟕𝟐𝒊 (6)
3.4 TotalFractalExpansion
Theareaofthetotalfractal(Figure8A)andthedistancebetweenpoints(Figure8B)of
theinvertedfractalalsoexpandedexponentially.
A
B
y = 1e2.1972x R² = 1
0
200
400
600
800
0 1 2 3 4
Are
a cm
-2
i
y=1.1081e2.3032xR²=0.99947
0
4,000
8,000
12,000
0 1 2 3 4
areacm-2
i
y=0.5549e1.2245xR²=0.99755
0
20
40
60
80
0 1 2 3 4
distan
cec
m -1
i
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Figure 8. Inverted Koch Snowflake fractal expansion per iteration time (i). (A) total area expansion and (B)
distance between points. cm = centimetres.
Theexpansionofthetotalarea (𝑨 𝑻)isdescribedas
𝑨𝑻 = 𝟏.𝟏𝟎𝟖𝟏𝒆𝟐.𝟑𝟎𝟑𝟐𝒊 (7)
Theexpansionofdistancebetweenpoints(D)isdescribedbytheequation
𝑫 = 𝟎.𝟓𝟓𝟒𝟗𝒆𝟏.𝟐𝟐𝟒𝟓𝒊 (8)
3.5 Velocity
The(recession)velocitiesforbothtotalareaanddistancebetweenpoints(Figures9A
and9Brespectively)increasedexponentiallyperiterationtime.
A
B
Figure 9. Inverted Koch Snowflake fractal (expansion) velocity. Expansion velocity of the inverted fractal at
each corresponding iteration time (i): (A) expansion of total area, and (B) distance between points. cm =
centimetres.
Velocityisdescribedbythefollowingequationsrespectively
𝒗 = 𝟏.𝟏𝟗𝟎𝟖𝒆𝟐.𝟑𝟎𝟑𝟐𝒊 (9)
𝒗𝑻 = 𝟎.𝟓𝟓𝟒𝟗𝒆𝟏.𝟎𝟗𝟖𝟔𝒊 (10)
y=1.1908e2.2426xR²=0.99995
0
2,000
4,000
6,000
8,000
10,000
0 1 2 3 4 5
velocitycm
-2 i
-1
i
y=0.5849e1.0986xR²=1
0
10
20
30
40
50
0 1 2 3 4 5
velocitycm
-1 i-
1
i
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where𝒗𝑻isthe(recession)velocityofthetotalarea;and𝒗the(recession)velocityof
distancebetweenpoints.
3.6 TheFractal/Hubble-WealthDiagram
Asthedistancebetweencentrepointsincreases(ateachcorrespondingiterationtime),
sotoodoestherecessionvelocityofthepoints–asshowninFigure10below.
Figure 10. The Fractal/ Hubble-Wealth diagram. As distance between triangle geometric centres increases
with iteration time (i), the recession velocity of the points increases. cm = centimetres.
Recessionvelocityvs.distanceofthefractalisdescribedbytheequation
𝒗 = 𝟎.𝟔𝟔𝟕𝟗𝑫 (11)
wheretheconstantfactorismeasuredinunitsofcm-1i -1 cm-1.
3.7 AccelerationofAreaandDistanceBetweenPoints
Theaccelerationsforbothtotalareaand(recession)distancebetweenpoints(Figure
11Aand11Brespectively)increasedexponentiallyperiterationtime.
y=0.6667xR²=1
0
10,000
20,000
30,000
40,000
0 10,000 20,000 30,000 40,000 50,000 60,000
velocitycm
-1i
-1
distancecm-1
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A
B
Figure 11. Inverted Koch Snowflake fractal (expansion) acceleration. Acceleration of the inverted fractal at
each corresponding iteration time (i): (A) expansion of total area, and (B) distance between points. cm =
centimetres.
Accelerationisdescribedbythefollowingequationsrespectively
𝒂𝑻 = 𝟏.𝟏𝟗𝟓𝟖𝒆𝟐.𝟐𝟎𝟕𝟑𝒊 (12)
𝒂 = 𝟎.𝟓𝟖𝟒𝟗𝒆𝟎.𝟗𝟕𝟕𝒊 (13)
whereaTisthe(recession)accelerationofthetotalarea;athe(recession)acceleration
ofdistancebetweenpoints.
Asthedistanceofcentrepointsincreases(ateachcorrespondingiterationtime)from
anobserver,sodoestherecessionaccelerationofthepoints(expandingaway)–as
showninFigure12below.
y=1.1958e2.2073xR²=0.99998
0
2
4
6
8
10
0 1 2 3 4
acceleraDo
nc
m -2
i -2
i
y=0.5849e0.977xR²=0.98977
0
10
20
30
40
0 1 2 3 4 5
acceleraDo
ncm
-1i
-2
i
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Figure 12. Recessional acceleration vs. distance on the inverted Koch Snowflake fractal. As distance
between triangle geometric centres increases with iteration time (i), the recession acceleration of the points
increases. cm = centimetres.
Therecessionaccelerationofpointsateachiterationtimeatdifferingdistancesonthe
invertedfractalisdescribedbytheequation
𝒂 = 𝟎.𝟒𝟒𝟒𝟕𝑫 (14)
wheretheconstantfactorismeasuredinunitsofcm-1i -2cm-1.a =acceleration;D =distance.
4 DISCUSSIONS
Inthisstudy,theKochSnowflakefractalattractorwasmodelledtodescribeanaspect
ofaneconomy–specificallygrowthandwealthdistribution.Therearehowever,many
otheraspectsandinsightstobetakenfromthesamefractal–withrespecttothe
marketandknowledge–andallwithbroadimplications.Someoftheseinsightshave
beentoucheduponhere,thoughinasuperficialmanner,becausetheyareimportantto
thetopic–othersnot.Thefollowingdiscussionsarewhatareconsideredmostrelevant
tothetopicofdistribution;buttogether,intime–withtheotherpotentialinsightson
thefractalexposed–thefractalmaysoundthewhatweterm‘themarket’tobeafractal
y=0.4445xR²=1
0
5,000
10,000
15,000
20,000
25,000
0 10,000 20,000 30,000 40,000 50,000 60,000
acceleraDo
ncm
-1 i-
2
distancecm-1
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object,onlyseparatedinourrealitybyitsintangibilityandabstractness,butnonethe
less,real.
4.1 AFractalLorenzCurve
Thestudydemonstratedthedistributionofbitareasizesonafractalisnotequal,and
becomesmoreunequalasbitsareproducedwithiteration-time:thisappearstomatch
reallifeLorenzincomedistributioncurvesandhowtheyarederived.
TheiteratinginvertedKochSnowflakefractalattractorproducedaclearLorenzcurve
(figure5):onesimilartoanyproducedfromrealeconomicwealthandincomedata.As
thispatterncanalsobeproducedfromthestaticclassicalfractal,thestudyshowedthe
Lorenzdistributionanalysis–theLorenzcurve–isanaspectorpropertyofafractal
attractorandcanbederivedfromallthingsfractalinnature.Fromthisitwasdeduced
thecultural/humanmarketeconomybehavesasafractal.Inequalityofincomeor
wealthdistributionisoftenseenasanundesirabletrade-offofthe‘freemarket’;
however,asrevealedinthisfractalexperiment,itmaybemoretruetosaythis
inequalityisanaturalphenomenon,apropertyofthe‘market’–notunusualorspecial,
buttypical.
Insightsfromthismodelwillbepresentinallstructuresthatiterate(withtime)and
showfractal/hierarchicalstructure–fromclouds,totrees,toinformation,andevento
theabundanceoftheelementsuniverse.Asanasidetofurthersupportthemodel,
Lorenzcurveswerecreatedfromthebranchweightdistributionofatypicaltree
(Macdonald2016a)andfortheabundanceofelementsinthenear13.8billionyearold
universe(seeappendixfigure3)(Macdonald2016b).Bothoftheseexperiments
producedcurvesmatchingthefractalLorenzcurveandtheeconomicsLorenzcurves.
Treesareclearfractals;andtheuniverseisconjecturedtobefractal.Fractalcosmology
isarecognisedbodyofsciencewithit’sownuniquetheoryonthestructureofthe
universe(Pietronero1987).
4.1.1 Regular Regularity Assumption
Theunrealistic‘regular-regular’assumption(asdescribedintheintroduction)
demonstratedbytheKochSnowflake–asopposedtoamorerealisticrough‘regular-
irregular’fractalliketheMandelbrotset–revealsonlyonestructuralaspectofthe
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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fractalattractor:itdoesnotshowtheirregularchaoticordiverseaspectsasrevealedin
individualcountriesLorenzcurves,andrespectiveGinicoefficients–bothstaticand
temporal.Itshowsanaspectorpropertyofallfractals,partoftheirstructure.Realityis
bynomeansregular;forinstance,wealthisnotaddedinequalbitsasassumedby
equaltriangles,andwealthdoesnotalwaysgrowastrianglesgrow,itcandecrease.
4.1.2 Growth and Recession
Whiletheiteratingfractaldemonstratesgrowth,recedingorrecessionwouldimplythe
processisreversedandallbitsizesdecreaseinsizewithiteration-time.
4.2 GiniCoefficients
ThecalculatedareaGinicoefficientsfromthefractalmodelalsomatchrealwealthGini
values–noticeablygreaterthanrealincomeGinicoefficientsandthusmoreskewedto
theright.
4.3 ShiftingLorenzCurveandIncreasingGinicoefficientwithGrowth
Areagrowthofthefractalandinequalitybetweenareasizesareinextricabilitylinked
asafunctionoftime:thisappearstobealawofthefractal.Ifaneconomyisassumedto
behaveasafractalattractor,wecanexpectitsrespectiveLorenzcurvewillshiftoutto
therightandthedistributionofwealth,andorincomewillbecome–inextricableto
growth–moreunequalwithtime.
TheoutwardshiftingoftheLorenzcurvesandthusincreasingfractalGinicoefficients
(figure6)isduetotheexponentialgrowthofthefractal(figure8A).Thismaydirectly
explaintheincreaseinglobalincomeGinicoefficientswithtimealongwiththe
exponential(income)growth–observedoverthelasttwoCenturies(asintroducedin
figure2).
4.4 Gini–DevelopmentContradictions
Asaresultofgrowth,thefractalproducedincreasingfractal-Ginicoefficientsat–
approachingavalueof1(figure6)–withrespecttoiteration-time.Fromthis,usingthis
fractalmodelitcanbeinferredthedegreetowhicharealeconomyisdevelopedbyits
Ginicoefficientalone–givenanfractalbecomesmore‘developed’andunequalasit
grows–withtime.Thispropertysuggestsalowiteration-time(young)economy
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pertainstolessinequality,andconversely,aneconomywithlargeriteration-timea
highinequality.ThismayhoweverbecontradictedbyrealincomeGinidata(thoughit
ismoresupportedforwealthdistributionalone).Manylesseconomicallydeveloped
economics(LEDCs),havehigherincomeGinicoefficientsthanmoreeconomically
developedeconomies(MEDCs).LEDGs;however,maybeatypical,andmaynothave
achievedthese‘high’Ginivaluesbygrowing(oremerging)inafractal‘economic’
mannerwithrespecttoiteration-time,butinsteadhadtheirGinicoefficients
anomalouslydistorted–tothehigh–onlyasaresultofhighdegreesofcorruption,or
lowdegreesoftechnology,opennessaspositedbyMilanovic.
4.5 KuznetsCurveCycles
Continuingdirectlyfromtheabove,thefractal-Lorenzcurvemodel,anditsincreasing
Giniwithtime,directlycontradictstheincomeKuznetscurve–andKuznetscycles–
wheretheKuznetscurveshows(income)Ginisfirstrisewitheconomicgrowthand
thenfall.Thisresultmaysuggest(againasmentionedabove)the–decreasingGini–
KuznetscurveandKuznetscyclesbehaviourisatypical–aculturalphenomenon,
broughtaboutbyintervention.Indeedthis–intervention–ishowtheKuznetscurveis
generallyreasoned:‘re-distributionisachievedthroughprogressivetaxesandwelfare
payments,andjobcreation’(economicsonline2016).Thissustainedincreaseofthe
fractalisindisagreementwithMilanovicandothers.Milanovic’sputsthedecrease–
anddipinthemiddleclass(appendixfigure6)–downtotechnologyopennessand
politics:however,politicsmaywellbethesolereasonastechnologyandopennesseach
ontheirownshouldleadtogrowthandthuswealthdiversion,notthereverse.Itmaybe
concludedthedownwardsideoftheKuznetscyclesaresolelyaproductofintervention
andtheupwardsideaproductof‘freer’liberalisedmarketsassociatedwithgrowth.
4.5.1 Matching Real Ginis
RealdatashowingincreasingwealthandincomeGinicoefficientspointsto–or
matches–freermarketsandthismatcheshowthefractalGinigrows.Ginishavegrown
astheworld’sincomeeconomyhasgrownoverthelasttwoCenturies(figure2);and,
inperiodsof‘freermarkets’orduringtherecenttimeofglobalisation(appendixfigure
5),Ginishavealso–onthewhole–increased,thisisespeciallyevidentinChina
(appendixfigure4).
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4.6 GrowthandWealthfromanInvertedPerspective
UnliketheclassicalKochSnowflakefractalformation(asdescribedintheintroduction),
theinvertedSnowflakeisnotastaticmodel;itisdynamicanditdemonstratesgrowth.
Thefollowingarethekeyinsightsfromthemodelasaconsequenceofthisgrowth.
4.6.1 Bit Size – Aggregate – Growth
Themodeldemonstratedthesimultaneousandinextricablegrowthofallbitsizes
relativetoeachotherwithrespecttotime:nomattertheir(arbitrary)startingsizeto
growthewhole(aggregate)geometricsetsize,alltheparts(alltriangles)grow.In
principle,anysinglebitsizewillintimegrowtobeequaltoitspredecessors:abranch
onatree–arealfractal–willintimegrowtobethesizeofthetrunkofthesametree.
Ofcoursewhenthe‘single’branchachievesthissize,thetrunk,andthepredecessors
willhaveagaingrown.
4.6.2 Relative Position and Distribution
TheinvertedKochSnowflakeisinprincipleinfiniteinsize–andthusintime.Fromthis
itcanbeinferred:whereverone’sobservationpointiswithinthefractalset–thisisto
say,ifatrianglebitischosenatrandomasaobservingpositionintheset,andan
observerobserves,fromthisbit,andlooksforwardandback–therewillalwaysbe
small‘bits’ahead,andalwayslarge‘bits’behind.Withintheinfiniteset,theobserver
willneverbethelargest.Thisinsighthasrelevancetoone’spositionwithinan
economicsystem:whereveroneisonthe‘wealth/incomeladder’,therewillalwaysbe
someone‘wealthier’above,andsomeone‘poorer’below–unlessyouarefirstandthe
largest.Ofcourseatthescaleandinthecontextofall‘complex’lifeonEarth,wealthis
finite,buttherangeofsizesofwealthareextremelydiverse–fromarguablywe
humans,throughtomicrobes,maybemolecules,andeven–asdiscussedabove–the
elements(andbeyond).Whatevertherange,ifsomethingisfractalbynature(and
natureappearstobefractalwhereverwelook),thedistributionofsizeswillfita
Lorenzdistributionstructure.
Thisprincipleiswelldescribed–indirectly–byProfessorHansRoslingofGapminder
inthisBBClectureonpopulation.At(time35:42)heshowstherelativeperspectivesof
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lookinguptothewealthy,anddowntothepoor:theverypoorestthinkofthenext
groupjustasthemiddleclassdothemostrichest(BBC2016).
Thisrelativepositionwillbereturnedtowhenaccelerationisdiscussed–below.
4.6.3 Refuting the ‘Zero Sum Game’ and Other Myths
Fromtheabove(4.6.1),thefractalmodelrefutesconjectureslike‘therichgetricher
andthepoorgetpoorer’,or‘thezerosumgame’ofwealthgrowth.Forthefractalto
grow,allbitsizesgrow,andthisonlyhappenswhennewbitsareadded–ornew
branchesareformed.
Ifbitsizeswereofequalsize–andthusequallydistributed–growthwouldbelimited
tooneortwoiteration-times,andarguablythefractalsetwouldnotgrowatall.Further
tothis,abranchonatreecannotholdbranchesofasimilarsize.Nowhereisthis
observedinnature,ifitwere,itwouldnotbefractal.Forthesamereasons,aneconomy
cannotbeequallydistributed.
4.6.4 Symbiosis
A(fractal-structured)treedemonstratesanactofinternalsymbiosis:theunequal
branchsizestructureofbranchesallowsforgreaterlightcapture–fortheproductive
leaves.Ifthewoodystemofatreesupportsandservicestheleavestogainmore
productivelight,thewealthstructureinaneconomymayserveasimilarrole
supportingproductiveenterprises:withoutthisitwillnot‘holdup’.Fromthisitis
deducedthefractal‘market’structureisthemostefficientmeanstogrow.Ifthetrunk
ofthetreeweretoredistributeitsareaorvolumetotheouter(smaller)branchesin‘an
actoffairness’,thefractalgeometry(tree)wouldcollapse.Thesamewouldresultifthe
outerbranchesweretocannibalise(ortax)thetrunk.Itmaybeinteresting–giventhe
fractalhasnoboundsforexamplesin‘nature’–toinvestigatethedegreetowhichother
biologicalsystemsredistributewealthorincomewithintheirownsystembymeansof
taxorregulation–examplesarenotobvious,andthereisnomentionofthisin
Vermeij’s:Nature,AnEconomicHistory.Inhisbookhegoestogreatlengthdescribing
theuniversalityoftradeandexchange–sharedinalleconomies.
4.6.5 Age Order
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ThefractalderivedLorenzcurverevealsanageorderstructureofthewealth
distributionwithgrowth:theoldesthavethelargestproportion.Thisagreeswithreal
treedevelopmentandtheageoftheelementsintheuniverseontheperiodictable:the
trunkistheoldest‘bit’;andheliumandhydrogenwerethefirstelementsformed
straightafterthebigbang.Subatomicparticlescamebeforeheliumandhydrogen;and
thelarger–andfewer–elementslikegold,cameafter.Whetherthisageorderis
prevalentintheeconomymaybeuncleartoseeatfirst,buttheruleshouldholdon
examination.
4.7 VelocityandAccelerationofWealth
Theinvertedfractalmodeldemonstratedexponentialvelocityofareagrowth(figure9
above);thisconcurswiththelong-termglobalincomegrowth.
Wealthorincomeacceleration(shownfigure11above);however,atleastinthefieldof
economics,isnotsocleartoseebyrealdata–thoughitisoftencasedasaconjectureor
asthreatfromthemoreleftsidedcommentators.Fromthisstudy,thisconjecturecan
berelegatedtoaprediction.Wecanpredictwealthand/orincomewillacceleratewith
time,aswillthe‘gap’betweenpopulationgroups(moreonthisbelow).
Appendixfigure6(Milanovic2016a)showstheglobalpercentagegrowthateach
percentileoftheglobalpopulationbetween1988and2008.Apartfromthe(USA)
middleclass(whichdemandsanexplanationastowhynot),allpercentilesaregrowing
bypositivepercentageandthusare–bycompoundinggrowth–acceleratingnotonly
together,butalsoacceleratingapartfromoneanotherinnominalincometerms.
Iflong-termgrowthaccelerationweretrue–withtime,thispatternwouldnotbe
uniquetoaneconomy:theplants,andpossiblyeventheuniverseasawholehavebeen
foundtoaccelerateinsimilarmanner.Trees,97%ofthem–takenfromastudyofsome
600,000,onsixcontinents,and100yearofdatacollection–havealsobeenshownto
acceleratewithgrowth(Stephensonetal.2014).Treesaretheobviousfractal
structure;theyhaveafractaldimensionandareregularlyusedasfractalexamples.I
havebeenableclaim,usingtheinvertedfractalmodel,plants–intheirtreeform–also
complytofractalgeometry,andwillacceleratewithgrowth.Withtheuniverse,current
observationshaverevealedittootobenotonly(Hubble)expanding,butalso–doingso
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–atanacceleratingrate.Bothoftheseobservations–expandingandaccelerating–
havenoobviousexplanation.Theuniverseissaidtobe:‘beenpulledapart’bya
mysterious‘darkenergy’.InmyoriginalstudyontheinvertedfractalIappliedthis
modelsametothisproblemclaimingtheuniverse’sacceleratingexpansion(the‘dark
energy’)andassociatedproblems,maybebestdescribedby(inverted)fractalgeometry
(Macdonald2014).Ifthesebiologicalandcosmologicalaccelerationobservationsare
thesameasthiswealthandincomeacceleration,theymayallbeunifiedandexplained
byfractalgeometry.
4.8 FractalHubble-WealthDiagram
InthecosmologyinvestigationusingthesameexpandinginvertedfractalIwasableto
produceaHubblediagram(showingincreasingrecessionvelocityofgalaxieswith
distance).AsthemodelderivingthisfractalLorenzcurveisthesameastheinverted
fractalmodel,Ibelieve,giventhematchingprinciplesofthemodel,thisrecessional
velocityandaccelerationbetweenpointscanequallyapplytoaneconomy.TheFractal
Hubble-Wealthdiagram(figure10above)predictsasthevelocityofwealthcreation
increaseswith‘distance’(orthegap)betweentheobserverorindividualandanother
grouporindividual.Whenvelocity(v)isplottedagainstdistanceofpoints(D)(figure
10,andAppendixfigure2)theinvertedfractaldemonstratesHubble’sLawdescribed
bytheequation
𝒗 = 𝑭𝒗𝑫 (15)
where(Fv)istheslopeofthelineofbestfit–thefractal(Hubble-Wealth)recession
velocityconstant.
4.8.1 Exponentially Accelerating Gap
Inthesamecosmologicalstudyusingtheinvertedfractal,acomplementarydiagramto
thefractalHubblediagramwasproducedshowingaccelerationbydistance:
accordinglyfigure12showsthe‘gap’acceleratesapart:theaccelerationofwealth
creationincreaseswith‘distance’(orthegap)betweentheobserverandanothergroup
orindividual.Groups–or‘thegap’–willaccelerateapartwithgrowth/time.
4.8.2 Non-Inertial Frames of Reference.
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Continuingwiththistopicofaccelerationandfurtherrefutingoftheclaim‘therichget
richer,whilethepoorgetpoor’asdiscussedabove(4.7.1):the‘poorgettingpoorer’
maybeonlyperceivedtobesoandisanillusionoftheacceleration.Observations
withinthefractalsetoreconomyaremadefrom–whatistermedinphysics–a‘non-
inertialoracceleratingframeofreference’.Thismayaccountfortheillusion–froma
fixedpositionintheset–therichappeartobegettingricher(aheadintheset),while
(behind)thepoorappeartobegettingpoorer;butinreality,thepoorarealso
accelerating,onlytheyappear–falsely–toberecedingaway.
4.9 WaveProperties
Anotherpropertyofthefractalgrowth–demonstratedinmethods2.1–isthe
sinusoidalspirallingofthediscretecomponentbits‘though’time–trianglesinthecase
oftheKochSnowflakedemonstratedinfigures4Bandappendixfigure1.This(vector)
spiralling–whichisnotobvioustotheobserverasitisthelinierdisplacementthatis
observed–suggestseconomicgrowthisasaresultofapropagatingtransversewave.
Thefractaleconomymayhaveawavefunctionproperty.Furtheranalysisofthis
propertyisbeyondthescopeofthisinvestigationbutwillbeaddressedina
complementarystudy.Sufficetosay,thisoccurrenceofwavepropagationofdiscrete
‘bits’alongwithconceptsoftimeandgrowthisnotlostontheauthorandmaystandas
acandidateorwindowintoquantummechanicaltheory–whereallthingsare
describedbyawavefunction.Putanotherway,todescribethegrowthbehaviourofthe
fractalmayrequiremathematicsderivedfromquantummechanics,anditmaybethat
the‘market’structure–withitsLorenzwealthandincomedistribution–isastanding
wavephenomenon,andallaconsequenceoraspectofiteration–oftime.
5 CONCLUSIONS
ThisinvestigationfoundtheLorenzcurvedistributionisapropertyofafractaland
fromthisthemarketmaybebestdescribedbyfractalgeometry.Theeconomybehaves
asafractal.Thispropertyisrevealedinallthingsfractalsuchastrees,clouds,possibly
theuniverse,andeconomies–whetherculturalornot.Lorenzdistributionis
inextricablylinkedtogrowthanddevelopmentofthefractal(oreconomy).Asthe
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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fractalgrowsanddevelops–withtime–theareaofcomponentbitsizes–itswealth–
distributionincreasesresultingwiththeLorenzcurveshiftingouttotherightandthe
respectiveGinicoefficientincreasing.ExponentialincomegrowthandGinicoefficient
globallyoverthelasttwoCentauriesconformtomodelledfractalgrowth–given
incomeisrelatedtowealthcreation.Thewealthgap–ordistancebetweenarea
sizes/wealthgroups–expandsapartatanacceleratingrate(exponentially)becoming
increasinglymoreunequalwithtime.Thevelocityandaccelerationofareaincrease
increasesasthegapordistanceincreases–similar,ifnotidenticaltothecosmological
Hubble’slawand‘darkenergy’(conjecture).Thiscosmologicalsimilarity,alongwith
thewavelikepropertiesofthegrowingfractal,mayberevealingpropertiesbeyondthe
scopeofeconomicstudies,andtheseareyettobeexplored.Theiteratingfractal,
growingoremerging–bit-by-bit–mayofferinsightsinthequantumaspectsofour
reality.
6 APPENDIX
Figure 1. Displacement measurements from radii on the iterating Koch Snowflake created with TI-Nspire ™ software. Displacement is measured between (discrete) triangle centres and used in the calculation of the
DemonstratingLorenzCurveDistributionandIncreasingGiniCoefficientwiththeIterating(KochSnowflake)FractalAttractor.
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fractal/Hubble constant. The red line traces the circumference (the distance) of the fractal spiral, and the blue
line the displacement of the fractal spiral from an arbitrary centre of observation. cm = centimetres.
Table 1. Displacement records taken from direct radius measurements and calculations from the iterating Koch
Snowflake fractal spiral (Appendix Figure 1).
i Displacement:
cm
Total Displacement:
cm
Expansion Ratio:
Velocity:
𝒄𝒎 𝒊!𝟏
Acceleration:
𝒄𝒎 𝒊!𝟐
0
-
1 1.68 1.68 - 1.68 1.68
2 4.66 6.34 3.77 4.66 2.98
3 12.16 18.5 2.92 12.16 7.50
4 35.4 53.9 2.91 35.40 23.24
cm = centimetres. i = iteration time.
Figure 2. The Fractal Hubble-Wealth Diagram. Recessional velocity vs. distance from radius measurements
(Appendix Figure 1). From an arbitrary observation point on the inverted (Koch Snowflake) fractal: as the
distance between triangle geometric centres points increases, the recession velocity of the points receding away
increases. cm = centimetres. i = iteration time.
y=0.6581xR²=0.99918
0
5
10
15
20
25
30
35
40
0 10 20 30 40 50 60
velocitycm
i-1
displacementcm
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Figure 3. Lorenz Curve of the (118) Elements from the Periodic Table. Using Lorenz curve method the
distribution of elements curve was produced. The Gini coefficient was calculated: it is equal to 0.9864 (4sf)
(Macdonald 2016b)
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Figure 4. Gini (Kuznets curve) with GDP per capita for China 1967-2007(Milanovic 2012)
Figure 5. Income Gini Change from 1988 to 2008. (Milanovic 2012)
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Figure 6. Global growth by percentile 1988 to 2008. (Milanovic 2016a)
Acknowledgments
FirstlyIwouldliketothankmyfamilyfortheirpatienceandsupport.Thankyoutomy
economicsstudent’sandcolleague’sintheInternationalBaccalaureateprogrammesin
StockholmSweden–Åva,Sodertalje,andYoungBusinessCreatives–fortheirhelpand
support.FortheirdirectbeliefandmoralsupportIwouldalsoliketothankMaria
WaernandDr.IngegerdRosborg.MathematiciansRolfOberg,andTosunErtanhelped
andguidedmenoend.
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