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Effects of saving and spending patterns on holding time distribution

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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.

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Authors and Affiliations

  1. Department of Systems Science, School of Management, Beijing Normal University, 100875, Beijing, P.R. China

    N. Ding, N. Xi & Y. Wang

Authors
  1. N. Ding
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  2. N. Xi
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  3. Y. Wang
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Corresponding author

Correspondence to Y. Wang.

Additional information

Received: 4 September 2003, Published online: 19 November 2003

PACS:

89.65.Gh Economics; econophysics, financial markets, business and management - 87.23.Ge Dynamics of social systems - 05.10.-a Computational methods in statistical physics and nonlinear dynamics - 02.50.-r Probability theory, stochastic processes, and statistics

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Ding, N., Xi, N. & Wang, Y. Effects of saving and spending patterns on holding time distribution. Eur. Phys. J. B 36, 149–153 (2003). https://doi.org/10.1140/epjb/e2003-00328-7

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  • DOI: https://doi.org/10.1140/epjb/e2003-00328-7

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