  Income and wealth distribution affect stability of a society to a large
extent and high inequality affects it negatively. Moreover, in the case of
developed countries, recently has been proven that inequality is closely
related to all negative phenomena affecting society. So far, Econophysics
papers tried to analyse income and wealth distribution by employing
distributions such as Fermi-Dirac, Bose-Einstein, Maxwell-Boltzmann, lognormal
(Gibrat), and exponential. Generally, distributions describe mostly income and
less wealth distribution for low and middle income segment of population, which
accounts about 90% of the population. Our approach is based on a totally new
distribution, not used so far in the literature regarding income and wealth
distribution. Using cumulative distribution method, we find that polynomial
functions, regardless of their degree (first, second, or higher), can describe
with very high accuracy both income and wealth distribution. Moreover, we find
that polynomial functions describe income and wealth distribution for entire
population including upper income segment for which traditionally Pareto
distribution is used.
