TITLE:
Quantification of Revenue Induction and Expenditure Reflux in a Monetary Economy
AUTHORS:
Shinji Miura
KEYWORDS:
Monetary Economy, Money Circulation, Revenue Induction, Expenditure Reflux
JOURNAL NAME:
Advances in Linear Algebra & Matrix Theory,
Vol.5 No.1,
March
18,
2015
ABSTRACT: In a monetary economy, expenditure induces revenue for each agent. We
call this the revenue induction phenomenon. Moreover, in a special case, part
of the expenditure by an agent returns as their own revenue. We call this the
expenditure reflux phenomenon. Although the existence of these phenomena is
known from the olden days, this paper aims to achieve a more precise quantification
of them. We first derive the revenue induction formula through solving the
partial money circulation equation. Then, for a special case, we derive the
expenditure reflux formula. Furthermore, this paper defines the revenue induction
coefficient and the expenditure reflux coefficient, which are the key concepts
for understanding the two formulas, and examines their range.