6533b85dfe1ef96bd12bdc8f
RESEARCH PRODUCT
Income distribution dynamics: monotone Markov chains make light work
Valentino Dardanonisubject
Continuous-time Markov chainEconomics and EconometricsMathematical optimizationMarkov kernelMarkov chain mixing timeMarkov chainVariable-order Markov modelApplied mathematicsMarkov propertyExamples of Markov chainsMarkov modelSocial Sciences (miscellaneous)Mathematicsdescription
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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1995-03-01 | Social Choice and Welfare |