DISTRIBUTIONS OF MONEY IN MODEL MARKETS OF ECONOMY

Anirban Chakraborti ()
Additional contact information
Anirban Chakraborti: Saha Institute of Nuclear Physics, 1/AF Bidhan Nagar, Kolkata 700 064, India

International Journal of Modern Physics C (IJMPC), 2002, vol. 13, issue 10, 1315-1321

Abstract: We study the distributions of money in a simple closed economic system for different types of monetary transactions. We know that for arbitrary and random sharing with locally conserving money transactions, the money distribution goes to the Gibb's distribution of statistical mechanics. We then consider the effects of savings, etc. and see how the distribution changes. We also propose a new model where the agents invest equal amounts of money in each transaction. We find that for short time-period, the money distribution obeys a power-law with an exponent very close to unity, and has an exponential tail; after a very long time, this distribution collapses and the entire amount of money goes to a tiny fraction of the population.

Keywords: Econophysics; simulation; market; power-law (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0129183102003905
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijmpcx:v:13:y:2002:i:10:n:s0129183102003905

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0129183102003905

Access Statistics for this article

International Journal of Modern Physics C (IJMPC) is currently edited by H. J. Herrmann

More articles in International Journal of Modern Physics C (IJMPC) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().