Transfer Potentials shape and equilibrate Monetary Systems

Dieter Braun and Robert Fischer

Papers from arXiv.org

Abstract: We analyze a monetary system of random money transfer on the basis of double entry bookkeeping. Without boundary conditions, we do not reach a price equilibrium and violate text-book formulas of economists quantity theory (MV=PQ). To match the resulting quantity of money with the model assumption of a constant price, we have to impose boundary conditions. They either restrict specific transfers globally or impose transfers locally. Both connect through a general framework of transfer potentials. We show that either restricted or imposed transfers can shape gaussian, tent-shape exponential, boltzmann-exponential, pareto or periodic equilibrium distributions. We derive the master equation and find its general time dependent approximate solution. An equivalent of quantity theory for random money transfer under the boundary conditions of transfer potentials is given.

Date: 2002-11
References: Add references at CitEc
Citations:

Published in Physica A, 321:605-618 (2003)

Downloads: (external link)
http://arxiv.org/pdf/physics/0211029 Latest version (application/pdf)

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:arx:papers:physics/0211029

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().