Statistical mechanics approach to the probability distribution of money
AbstractThis 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.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1007.5074.
Date of creation: Jul 2010
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Publication status: 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
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Web page: http://arxiv.org/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-06 (All new papers)
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