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

12 Pages Posted: 18 Dec 2010

See all articles by Enrico Scalas

Enrico Scalas

affiliation not provided to SSRN

Ubaldo Garibaldi

affiliation not provided to SSRN

Date Written: 2009

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

JEL Classification: A12, C50, D50, J21

Suggested Citation

Scalas, Enrico and Garibaldi, Ubaldo, A Dynamic Probabilistic Version of the Aoki-Yoshikawa Sectoral Productivity Model (2009). Economics: The Open-Access, Open-Assessment E-Journal, Vol. 3, 2009-15, Available at SSRN: https://ssrn.com/abstract=1726845 or http://dx.doi.org/10.5018/economics-ejournal.ja.2009-15

Enrico Scalas (Contact Author)

affiliation not provided to SSRN

Ubaldo Garibaldi

affiliation not provided to SSRN

No Address Available

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