Logo image
Bequest division and income inequality: comparative dynamics of Markov branching processes
Journal article   Peer reviewed

Bequest division and income inequality: comparative dynamics of Markov branching processes

C.Y.C. Chu and Hui-Wen Koo,
Economica, Vol.62(248), pp.423-440
1995

Abstract

Economics and Econometrics
The authors show that the bequest-income transition rule for each child should be linearly combined to form an inter-generational income transition rule which dominates the dynamics of the underlying stochastic processes. The various bequest division rules correspond to different linear combinations of parent-child bequest transition, and hence distinct intergenerational mobility matrix. Under different assumptions about parents' information background, they derive conditions needed to establish the causal relationship between more equal bequest division and better income distribution in the sense of second-degree stochastic dominance. -from Authors

Metrics

1 Record Views

Details

Logo image