Statistical mechanics of money
Adrian Dragulescu and
Victor Yakovenko ()
Papers from arXiv.org
In a closed economic system, money is conserved. Thus, by analogy with energy, the equilibrium probability distribution of money must follow the exponential Gibbs law characterized by an effective temperature equal to the average amount of money per economic agent. We demonstrate how the Gibbs distribution emerges in computer simulations of economic models. Then we consider a thermal machine, in which the difference of temperatures allows one to extract a monetary profit. We also discuss the role of debt, and models with broken time-reversal symmetry for which the Gibbs law does not hold.
Date: 2000-01, Revised 2000-08
References: Add references at CitEc
Citations View citations in EconPapers (93) Track citations by RSS feed
Published in Eur. Phys. J. B 17, 723 (2000)
Downloads: (external link)
http://arxiv.org/pdf/cond-mat/0001432 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:cond-mat/0001432
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().