The Circulation of Money and Holding Time Distribution
نویسندگان
چکیده
We have studied the statistical mechanics of money circulation in a closed economic system. An explicit statistical formulation of the circulation velocity of money is presented for the first time by introducing the concept of holding time of money. The result indicates that the velocity is governed by behavior patterns of economic agents. Computer simulations have been carried out in order to demonstrate the shape of the holding time distribution. We find that, money circulation is a Poisson process in which the holding time probability distribution follows a type of Gamma distribution, and the velocity of money depends on the share for exchange and the number of agents.
منابع مشابه
Dynamic Process of Money Transfer Models
We have studied numerically the statistical mechanics of the dynamic phenomena, including money circulation and economic mobility, in some transfer models. The models on which our investigations were performed are the basic model proposed by A. Drăgulescu and V. Yakovenko [1], the model with uniform saving rate developed by A. Chakraborti and B.K. Chakrabarti [2], and its extended model with di...
متن کاملAn Analysis of Circulation of Decentralized Digital Money in Quantum Electrodynamics Space: the Econphysics Approach
The study aimed at showing how to create and release cryptocurrency, based on which one can introduce a new generation of this money that can continue its life in the quantum computers space and study whether cryptocurrency could be controlled or the rules should be rewritten in line with new technology. Regarding this, we showed the evolution of money and its uses in economic relations. Accord...
متن کاملPower-law Distributions in Circulating Money: Effect of Preferential Behavior
Empirical studies on many social issues show that numerous statistical distributions follow power laws, such as stock-price fluctuations, the probability distribution of the population of cities, the degree distributions in many networks and distribution of income or wealth. In particular, the wealth distribution which is an old topic has recently been renewed by a small band of econophysicists...
متن کاملEthical Analysis of Late Payment Penalties
Background: Recognizing the causes of non-current receivables can well prevent the largest deviation in the allocation of resources as the blocking of resources in a particular sector and their lack of proper distribution. Inserting the condition of late payment penalty is one of the legal solutions to deal with late payment, which is included in banking contracts. In this article, the status o...
متن کاملEffects of saving and spending patterns on holding time distribution
The effects of saving and spending patterns on holding time distribution of money are investigated based on the ideal gas-like models. We show the steady-state distribution obeys an exponential law when the saving factor is set uniformly, and a power law when the saving factor is set diversely. The power distribution can also be obtained by proposing a new model where the preferential spending ...
متن کامل