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Immigration Effects On Economic Systems Through Dynamic Inequality Indices

Author

Listed:
  • Guglielmo D’Amico
  • Giuseppe Di Biase
  • Raimondo Manca

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.

Suggested Citation

  • Guglielmo D’Amico & Giuseppe Di Biase & Raimondo Manca, 2011. "Immigration Effects On Economic Systems Through Dynamic Inequality Indices," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(5), pages 11-25.
    • Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:11-25
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    References listed on IDEAS

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    Cited by:

    1. Guglielmo D’Amico & Giuseppe Di Biase & Raimondo Manca, 2015. "Measuring Income Inequality: An Application Of The Population Dynamic Theil'S Entropy," Accounting & Taxation, The Institute for Business and Finance Research, vol. 7(1), pages 103-114.

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    More about this item

    Keywords

    Income distribution; Dynamic inequality index; semi-Markov reward processes.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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