The statistical distribution of money and the rate of money transference

Abstract

The distribution of money is analysed in connection with the Boltzmann distribution of energy in the degenerate states of molecules. Plots of the population density of income distribution for various countries are well reproduced by a Gamma function, confirming the validity of the statistical distribution at equilibrium. The equilibrium state is reached through pair wise money transference processes, independently of the shape of the initial distribution and also of the detailed nature of the money transactions between the economic agents.Comment: 15 pages plus 1 table plus 3 figure

Kinetic exchange models for income and wealth distributions

“…Studies of gas-like or particle-exchange models have already been carried out on complex networks [68,69]. Similar models study the effect of risk aversion and subsequent emergence of Gibbs and power-law distributions in different cases [70], while another study tunes the rate of money transfer to obtain Boltzmann and Gibbs-like money distributions [71]. Similarly, one can introduce asymmetry in favor of either of the traders in a trade-investment framework and produce power law distributions in wealth distributions [72].…”

Temporal evolution of the “thermal” and “superthermal” income classes in the USA during 1983–2001

“…These two methodologies may produce different results, particularly for low incomes. Third, it is necessary to distinguish between distributions of money [8,25,26], wealth [19,27], and income. They are, presumably, closely related, but may be different in some respects.…”

Household income distribution in the USA

“…For e βr 1, our model produces a gamma-like distribution curve ρ(r) = c r α e −βr , which is favored by various authors (for example, see [3,9,22,23] may then provide some deeper insight to the underlying behavior behind income dynamics of households in developed countries. It would be nice if a socio-economic model based on the particulars of the operation of the American society is found to explain the degeneracy g(r) ∝ r 3/2 of income states.…”

“…Among them are those by Dragulescu and Yakovenko [19,20] for UK and USA, by Fujiwara et al [24] for Japan, by Nirei and Souma [30] for US and Japan, by Ferrero [22,23] for Japan, UK, New Zealand and Argentina. Also, Clementi and collaborators have looked at the power tails in income distributions for Italy, Germany, UK and USA [13,14,16].…”