Statistical mechanics approach to the probability distribution of money
Victor Yakovenko ()
Papers from arXiv.org
This Chapter reviews statistical models for the probability distribution of money developed in the econophysics literature since the late 1990s. In these models, economic transactions are modeled as random transfers of money between the agents in payment for goods and services. Starting from the initially equal distribution of money, the system spontaneously develops a highly unequal distribution of money analogous to the Boltzmann-Gibbs distribution of energy in physics. Boundary conditions are crucial for achieving a stationary distribution. When debt is permitted, it destabilizes the system, unless some sort of limit is imposed on maximal debt.
References: View complete reference list from CitEc
Citations Track citations by RSS feed
Published in "New Approaches to Monetary Theory: Interdisciplinary Perspectives", ed. by Heiner Ganssmann, ISBN 978-0-415-59525-4, Routledge (2011), pp 104-123, Ch. 7
Downloads: (external link)
http://arxiv.org/pdf/1007.5074 Latest version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1007.5074
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().