Colloquium: Statistical mechanics of money, wealth, and income

Details Colloquium: Statistical mechanics of money, wealth, and income Colloquium: Statistical mechanics of money, wealth, and income

2009-05-11

arxiv.org/abs/0905.1518v2

Reviews of Modern Physics 81, 1703 (2009)

Economy

Quantitative Finance

Statistical Finance

24 pages, 13 figures; v.2 - minor stylistic changes and updates of references corresponding to the published version

Scientific paper

10.1103/RevModPhys.81.1703

This Colloquium reviews statistical models for money, wealth, and income distributions developed in the econophysics literature since the late 1990s. By analogy with the Boltzmann-Gibbs distribution of energy in physics, it is shown that the probability distribution of money is exponential for certain classes of models with interacting economic agents. Alternative scenarios are also reviewed. Data analysis of the empirical distributions of wealth and income reveals a two-class distribution. The majority of the population belongs to the lower class, characterized by the exponential ("thermal") distribution, whereas a small fraction of the population in the upper class is characterized by the power-law ("superthermal") distribution. The lower part is very stable, stationary in time, whereas the upper part is highly dynamical and out of equilibrium.

Affiliated with

Also associated with

No associations

Rating

Colloquium: Statistical mechanics of money, wealth, and income does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Colloquium: Statistical mechanics of money, wealth, and income, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Colloquium: Statistical mechanics of money, wealth, and income will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-700070