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The determinants of the velocity of money have been examined based on life-cycle hypothesis. The velocity of money can be expressed by reciprocal of the average value of holding time which is defined as interval between participating…

Physics and Society · Physics 2009-11-11 Yougui Wang , Hanqing Qiu

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…

Physics and Society · Physics 2009-11-11 Yougui Wang , Ning Ding , Li Zhang

We propose a novel framework to analyse the velocity of money in terms of the contribution (MicroVelocity) of each individual agent, and to uncover the distributional determinants of aggregate velocity. Leveraging on complete publicly…

General Economics · Economics 2023-05-04 Carlo Campajola , Marco D'Errico , Claudio J. Tessone

This paper defines the average holding period of money and proposes a methodology for fully disaggregated measurement. Our measure is shown to be the inverse of the transfer velocity of money under stationary conditions, which is implicitly…

General Economics · Economics 2025-03-19 Carolina E. S. Mattsson , Allison Luedtke , Frank W. Takes

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…

Physics and Society · Physics 2008-12-02 Yougui Wang , Ning Ding

In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to…

Physics and Society · Physics 2009-11-11 Ning Xi , Ning Ding , Yougui Wang

Cryptocurrencies are examined through the asset flow equations and experimental asset markets. Since tangible value of a typical cryptocurrency is non-existent, the theory suggests that price will gravitate toward liquidity value, i.e., the…

Mathematical Finance · Quantitative Finance 2018-02-28 Carey Caginalp , Gunduz Caginalp

In the evolving domain of cryptocurrency markets, accurate token valuation remains a critical aspect influencing investment decisions and policy development. Whilst the prevailing equation of exchange pricing model offers a quantitative…

Computational Engineering, Finance, and Science · Computer Science 2024-03-11 Stylianos Kampakis , Melody Yuan , Oritsebawo Paul Ikpobe , Linas Stankevicius

We suggest employing log-ergodic processes to simulate the velocity of money in an ergodic manner. Our approach sheds light on economic behavior, policy implications, and financial dynamics by maintaining long-term stability. By bridging…

General Finance · Quantitative Finance 2024-12-13 Kiarash Firouzi , Mohammad Jelodari Mamaghani

Cryptocurrencies are considered relevant assets and they are currently used as an investment or to carry out transactions. However, specific characteristics commonly associated with the cryptocurrencies such as irreversibility,…

Cryptography and Security · Computer Science 2023-11-30 Hugo Almeida , Pedro Pinto , Ana Fernández Vilas

The goal of this paper is to explore the relationship between momentum effects and liquidity in cryptocurrency markets. Portfolios based on momentum-liquidity bivariate sorts are formed and rebalanced on a varying number of cryptocurrencies…

General Finance · Quantitative Finance 2019-04-02 Stjepan Begušić , Zvonko Kostanjčar

In this paper, we investigate the economic mobility in some money transfer models which have been applied into the research on wealth distribution. We demonstrate the mobility by recording the time series of agents' ranks and observing…

Physics and Society · Physics 2009-11-11 Ning Ding , Ning Xi , Yougui Wang

Flow control with the goal of reducing the skin friction drag on the fluid-solid interface is an active fundamental research area, motivated by its potential for significant energy savings and reduced emissions in the transport sector.…

Fluid Dynamics · Physics 2017-05-24 Bettina Frohnapfel , Yosuke Hasegawa , Maurizio Quadrio

In this article we use real traffic data to confirm that vehicle velocities follow Gaussian distribution in steady state traffic regimes (free-flow, and congestion). We also show that in the transition between free-flow and congestion, the…

Networking and Internet Architecture · Computer Science 2016-05-20 Sherif M. Abuelenin , Adel Y. Abul-Magd

Recently, in order to explore the mechanism behind wealth or income distribution, several models have been proposed by applying principles of statistical mechanics. These models share some characteristics, such as consisting of a group of…

Physics and Society · Physics 2008-12-02 Yougui Wang , Ning Ding , Ning Xi

Travel speed is an intrinsic feature of transport, and enlarging the speed is considered as beneficial. The benefit of a speed increase is generally assessed as the value of the saved travel time. However, this approach conflicts with the…

General Economics · Economics 2021-06-15 Cornelis Dirk van Goeverden

We model financial transactions as random walks on activity-driven temporal networks. By enforcing fund conservation, our framework analytically derives heavy-tailed distributions for the stationary balances and transaction sizes.…

Physics and Society · Physics 2026-02-25 Carolina E. Mattsson , Claudio Cellerini , Jaume Ojer , Michele Starnini

The cryptocurrency market is amongst the fastest-growing of all the financial markets in the world. Unlike traditional markets, such as equities, foreign exchange and commodities, cryptocurrency market is considered to have larger…

General Finance · Quantitative Finance 2020-04-06 Fan Fang , Waichung Chung , Carmine Ventre , Michail Basios , Leslie Kanthan , Lingbo Li , Fan Wu

In this paper we extend the known methodology for fitting stable distributions to the multivariate case and apply the suggested method to the modelling of daily cryptocurrency-return data. The investigated time period is cut into 10…

Applications · Statistics 2018-10-24 Szabolcs Majoros , András Zempléni

We consider the problem of estimating the joint distribution of a continuous-time perpetuity and the underlying factors which govern the cash flow rate, in an ergodic Markov model. Two approaches are used to obtain the distribution. The…

Probability · Mathematics 2016-01-18 Constantinos Kardaras , Scott Robertson
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