Effects of saving and spending patterns on holding time distribution

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