Effects of Saving and Spending Patterns on Holding Time Distribution

Abstract

The effects of saving and spending patterns on holding time distribution of money are investigated based on the ideal gas-like models. We show the steady-state distribution obeys an exponential law when the saving factor is set uniformly, and a power law when the saving factor is set diversely. The power distribution can also be obtained by proposing a new model where the preferential spending behavior is considered. The association of the distribution with the probability of money to be exchanged has also been discussed.

9 pages, 6 figures

References in corpus (5)

• Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States
• Statistical mechanics of money: How saving propensity affects its distribution
• Evidence for the exponential distribution of income in the USA
• Distributions of money in model markets of economy
• The Circulation of Money and Holding Time Distribution

Cited by in corpus (7)

• Kinetic Exchange Models for Income and Wealth Distributions
• Master equation for a kinetic model of trading market and its analytic solution
• How Required Reserve Ratio Affects Distribution and Velocity of Money
• Kinetic models for wealth exchange on directed networks
• Power-Law Distributions in Circulating Money: Effect of Preferential Behavior
• The Velocity of Money in a Life-Cycle Model
• Ideal-Gas Like Markets: Effect of Savings