✦ LIBER ✦
Income distribution dynamics: monotone Markov chains make light work
✍ Scribed by Valentino Dardanoni
- Book ID
- 104653168
- Publisher
- Springer
- Year
- 1995
- Tongue
- English
- Weight
- 792 KB
- Volume
- 12
- Category
- Article
- ISSN
- 0176-1714
No coin nor oath required. For personal study only.
✦ Synopsis
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 monotone if each row stochastically dominates the row above it. It will be shown that by embedding the dynamics of the income distribution in a monotone Markov chain, a number of interesting results may be obtained in a straightforward and intuitive fashion.