(a) in a closed economic system money is conserved;
(b) money is a type of energy;
(c) each economic agent has a certain amount of average money (or energy);
(d) an “effective temperature” of the economic system can be obtained from this model that will follow the exponential Boltzmann-Gibbs law.
[4] |
French-born Italian mathematical engineer Vilfredo Pareto's 1902 spinning top molecular social pyramid model of wealth distribution (Pareto principle). [5] |
“I made complete use of six years to get a PhD from the physics department of University of Maryland, College Park. My advisor was Victor Yakovenko. This was a very happy period of my life. I had the freedom and time to study any subject that interested me. Before that, I studied physics in Timisoara, Romania for five years. It was right after the Communist regime fell so the curriculum became boldly experimental, with a bunch of enthusiastic young lecturers.”