Analysis of economic dynamics of inequalities with the econophysics approach

This study discusses the phenomenon of inequality in the context of Econophysics. The aim of the study is to examine the dynamics of economic inequalities defined by economic and social conditions in the social reproduction process depending on property relations. Although the phenomenon of inequality is mainly handled with a multidisciplinary approach in the inequality literature, the approaches developed by the natural sciences are mostly neglected. For this reason, the Econophysics approach, which is a new interdisciplinary research field based on the use of the laws, developed theories and methods, which are explained by physicists for the purpose of examining economic problems, was preferred in order to carry out the study. In the analysis of the economic dynamics of inequalities, economic variables interact with each other cyclically and internally in economic growth cycles; that the cycle is not caused by chance or contingent external shocks, but as a result of the dynamic interplay of the deterministic variables of the model; Goodwin growth cycles, a two-class model of the struggles of capital and labour for the share of national income, are used to explain the internal cycles produced by the distributional conflicts between classes. The statistical distribution structure of the data was revealed by using the individual incomes obtained from the household budget survey for the 2002-2019 period of the Turkish economy, and the employment rate and the share of the labour force variables, which are the main variables of the Goodwin model, were calculated based on the distributional structure of the income data. According to the findings, it has been determined that the income in the Turkish economy has a two-regime distribution structure. A Goodwin cycle was observed in the Turkish economy for the years 2002-2013. In addition, the model produces a result consistent with the non-employment growth phenomenon discussed in the post-2002 period for the Turkish economy. Based on the Gini and Pareto coefficients calculated in the examined period, it has been concluded that inequality dynamics are reproduced through resource transfer mechanisms from middle-income households to low and high income households as a macroeconomic policy in the Turkish economy.