Abstract
We consider the ideal-gas models of trading markets. where each agent is identified with a gas molecule and each trading an as alastic or money-conserving (two-body) collision. Unlike in the ideal gas. we introduce saving propensity λ of agents, such that each agents 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≠0 and Pareto-like when λ is widely distributed among the agents. Wr compare these results with observations on wealth distributions of various countries
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Chakrabarti, B.K., Chatterjee, A. (2004). Ideal Gas-Like Distributions in Economics: Effects of Saving Propensity. In: Takayasu, H. (eds) The Application of Econophysics. Springer, Tokyo. https://doi.org/10.1007/978-4-431-53947-6_40
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DOI: https://doi.org/10.1007/978-4-431-53947-6_40
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