Steindl on Stochastic Processes

PSL Quarterly Review, Vol. 65 No. 261, pp. 151-166, 2012

16 Pages Posted: 24 Oct 2014

Date Written: June 15, 2012

Abstract

Steindl’s work on stochastic processes aims to describe the economy as in a state of imbalance, due to the fact that its starting conditions are an accident of history, and nobody has a clue what tomorrow will bring. This does not mean that we cannot imagine a balanced distribution – when the various forces of change are constant – as a way of pointing out certain fundamental characteristics. Such a purpose is compatible with the use of stochastic models, because these also entail the study of systematic phenomena. In fact, what we often describe as 'random' is the result of lots and lots of independent forces acting together on a particular phenomenon.

Keywords: Stochastic models, forces of change, Pareto distribution, history matters

JEL Classification: E12, B16, B25, B31

Suggested Citation

Corsi, Marcella, Steindl on Stochastic Processes (June 15, 2012). PSL Quarterly Review, Vol. 65 No. 261, pp. 151-166, 2012, Available at SSRN: https://ssrn.com/abstract=2514197

Marcella Corsi (Contact Author)

Sapienza University of Rome ( email )

Piazzale Aldo Moro 5
Rome, 00185
Italy

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