Power-Law Distributions in Circulating Money: Effect of Preferential Behavior
Physics and Society
2009-11-11 v1 Statistical Mechanics
General Finance
Abstract
We introduce preferential behavior into the study on statistical mechanics of money circulation. The computer simulation results show that the preferential behavior can lead to power laws on distributions over both holding time and amount of money held by agents. However, some constraints are needed in generation mechanism to ensure the robustness of power-law distributions.
Cite
@article{arxiv.physics/0507151,
title = {Power-Law Distributions in Circulating Money: Effect of Preferential Behavior},
author = {Ning Ding and Yougui Wang},
journal= {arXiv preprint arXiv:physics/0507151},
year = {2009}
}
Comments
4 pages, 2 figures