English

Statistical mechanics of money, debt, and energy consumption

Statistical Finance 2011-03-14 v1

Abstract

We briefly review 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. We focus on conceptual foundations for this approach, on the issues of money conservation and debt, and present new results for the energy consumption distribution around the world.

Keywords

Cite

@article{arxiv.1008.2179,
  title  = {Statistical mechanics of money, debt, and energy consumption},
  author = {Victor M. Yakovenko},
  journal= {arXiv preprint arXiv:1008.2179},
  year   = {2011}
}

Comments

6 pages, 4 figures, invited paper to the journal "Science and Culture" for a special issue on Econophysics; located at http://www.scienceandculture-isna.org/sep-oct-2010.htm