IMMIGRATION EFFECTS ON ECONOMIC SYSTEMS THROUGH DYNAMIC INEQUALITY INDICES

Guglielmo D’Amico, Giuseppe Di Biase and Raimondo Manca

Global Journal of Business Research, 2011, vol. 5, issue 5, 11-25

Abstract: In this paper we propose a stochastic model to analyze the time evolution of inequality within an economic system. The classical inequality indices, Herfindahl-Hirschman, Gini and Theil’s entropy, are thereby turned into a dynamic form. We show, by using a simulative approach, how it is possible to study the time evolution of inequality in a closed or open economy. We pay particular attention to immigration effects on the inequality. The model is able to manage different behaviors of the inequality indices and it may help decision makers calibrate the economic policies of inequality containment.

Keywords: Income distribution; Dynamic inequality index; semi-Markov reward processes. (search for similar items in EconPapers)
JEL-codes: C63 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:5:y:2011:i:5:p:11-25

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