The statistical distribution of money and the rate of money transference

2003/06/12 by Juan C. Ferrero · 3 citations
Economics, Econometrics and Finance · Physics and Astronomy · #Advanced Thermodynamics and Statistical Mechanics #Complex Systems and Time Series Analysis #Theoretical and Computational Physics #cond-mat.stat-mech #physics.soc-ph #q-fin.GN

paper · pdf · doi:10.1016/j.physa.2004.05.029

15 pages plus 1 table plus 3 figures

arxiv created 2003/06/12 · openalex publication_date 2004/06/09 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

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.

Citations

• Statistical mechanics of money

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