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Effects of Saving and Spending Patterns on Holding Time Distribution

arXiv:physics/0507149 · doi:10.1140/epjb/e2003-00328-7

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