Abstract
The work is devoted to the development of a mathematical model for studying the probability distribution of money of an agent. The model is based on the Fokker–Planck equation. To calculate the diffusion term, we used the quadratic dependence of the money balance of an agent in the Yakovenko model. To calculate the drift term, we propose to use a function (potential) that takes into account the income (i.e. the influx of money) and expenditures (i.e. the outflow of money) for an agent. For an analytical description of the income of an agent, a linear dependence on money balance was used. Expenditures were characterized by the demand for essential goods, long-term and luxury goods. Tornquist functions were used to describe the demand functions. The construction of the potential made it possible to identify atypical conditions for the formation of the probability distribution of money.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Physica A: Statistical Mechanics and its Applications
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
