A Dynamic Probabilistic Version of the Aoki-Yoshikawa Sectoral Productivity Model

Enrico Scalas and Ubaldo Garibaldi

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2009, vol. 3, No 2009-15, 10 pages

Abstract: In this paper, the authors explore a dynamical version of the Aoki and Yoshikawa model (AYM) for an economy driven by demand. They show that when an appropriate Markovian dynamics is taken into account, the AYM has different equilibrium distributions depending on the form of transition probabilities. In the version of the dynamic AYM presented here, transition probabilities depend on a parameter c tuning the choice of a new sector for workers leaving their sector. The solution of Aoki and Yoshikawa is recovered only in the case c = 0. All the other possible cases give different equilibrium probability distributions, including the Bose-Einstein distribution.

Keywords: Macroeconomics; Markov processes; Markov chains; stochastic models; statistical equilibrium in Economics (search for similar items in EconPapers)
JEL-codes: A12 C50 D50 J21 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:7601

DOI: 10.5018/economics-ejournal.ja.2009-15

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