Ideal Gas-Like Distributions in Economics: Effects of Saving Propensity
| dc.creator | Chakrabarti, Bikas K. | |
| dc.creator | Chatterjee, Arnab | |
| dc.date | 2003-02-07 | |
| dc.date.accessioned | 2026-07-07T12:06:45Z | |
| dc.date.available | 2026-07-07T12:06:45Z | |
| dc.description | We consider the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving (two-body) collision. Unlike in the ideal gas, we introduce saving propensity $λ$ of agents, such that each agent saves a fraction $λ$ of its money and trades with the rest. We show the steady-state money or wealth distribution in a market is Gibbs-like for $λ=0$, has got a non-vanishing most-probable value for $λ\ne 0$ and Pareto-like when $λ$ is widely distributed among the agents. We compare these results with observations on wealth distributions of various countries. | |
| dc.description | 6 pages, 3 eps figures. To be published in `Application of Econophysics', Ed. H. Takayasu, Springer-Verlag, Tokyo (2003): Proc. 2nd. Nikkei Symposium on Econophysics, Tokyo, Nov. 2002 | |
| dc.identifier | https://arxiv.org/abs/cond-mat/0302147 | |
| dc.identifier | http://arxiv.org/abs/cond-mat/0302147 | |
| dc.identifier.uri | http://salesiana.dossiersoluciones.com/handle/123456789/208746 | |
| dc.subject | Statistical Mechanics | |
| dc.subject | General Finance | |
| dc.title | Ideal Gas-Like Distributions in Economics: Effects of Saving Propensity | |
| dc.type | text |