Dynamics of income distribution
β Scribed by Hongyi Li; Danyang Xie; Heng-Fu Zou
- Book ID
- 108499967
- Publisher
- John Wiley and Sons
- Year
- 2000
- Tongue
- English
- Weight
- 151 KB
- Volume
- 33
- Category
- Article
- ISSN
- 0008-4085
No coin nor oath required. For personal study only.
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## Abstract In this paper, we propose a model of income dynamics which takes account of mobility both within and between jobs. The model is a hybrid of the moverβstayer model of income dynamics and a geometric random walk. In any period, individuals face a discrete probability of βmovingβ, in which
This paper considers some aspects of the dynamics of income distributions by employing a simple Markov chain model of income mobility. The main motivation of the paper is to introduce the techniques of "monotone" Markov chains to this field. The transition matrix of a discrete Markov chain is called