  To gain insights into the problem of regional inequality, we proposed new
regional asset exchange models based on existing kinetic income-exchange models
in economic physics. We did this by setting the spatial exchange range and
adding bias to asset fraction probability in equivalent exchanges. Simulations
of asset distribution and Gini coefficients showed that suppressing regional
inequality requires, firstly an increase in the intra-regional economic
circulation rate, and secondly the narrowing down of the exchange range
(inter-regional economic zone). However, avoiding over-concentration of assets
due to repeat exchanges requires adding a third measure; the local support bias
(distribution norm). A comprehensive solution incorporating these three
measures enabled shifting the asset distribution from over-concentration to
exponential distribution and eventually approaching the normal distribution,
reducing the Gini coefficient further. Going forward, we will expand these
models by setting production capacity based on assets, path dependency on
two-dimensional space, bias according to disparity, and verify measures to
reduce regional inequality in actual communities.

Physics and Society;General Finance