A Mathematical Model of Universal Basic Income and Its Numerical Simulations

A Mathematical Model of Universal Basic Income and Its Numerical Simulations

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In this paper, an elementary mathematical model describing the introduction of a universal basic income in a closed market society is constructed.The model is formulated in terms of a system of nonlinear ventilationstejp ordinary differential equations, each of which gives account of how the number of individuals in a certain income class changes in time.Societies ruled by different fiscal systems (with no taxes, with taxation and redistribution, with a welfare system) are considered and the effect of the presence of a basic income in the various cases is analysed by means of numerical simulations.The main findings are that basic income effectively acts as a tool of poverty alleviation: indeed, in its presence the portion of individuals in the poorest classes and economic inequality diminish.Of course, the issue of a universal basic income in the real world is more complex and involves a variety of tess milne bikini aspects.

The goal here is simply to show how mathematical models can help in forecasting scenarios resulting from one or the other policy.