Boats and Tides and Trickle Down Theories: What Stochastic Process Theory Has To Say About Modeling Poverty, Inequality, Mobility and Polarization
AbstractAphorisms that “Rising tides raise all boats” or that material advances of the rich eventually “Trickle Down” to the poor are really maxims regarding the nature of stochastic processes that underlay the income paths of groups of individuals. This paper looks at the implications of conventional assumptions made by economists concerning such processes for the empirical analysis of wellbeing in terms of poverty, inequality, mobility and polarization. The implications of attributing different processes to different groups in society following the club convergence literature are also discussed. Various forms of poverty, inequality and income mobility structures are considered and much of the conventional wisdom afforded us by such aphorisms is questioned. To exemplify these ideas the results are applied to the distribution of GDP per capita in the continent of Africa.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-377.
Length: 36 pages
Date of creation: 23 Oct 2009
Date of revision:
Contact details of provider:
Postal: 150 St. George Street, Toronto, Ontario
Phone: (416) 978-5283
Stochastic Processes; Poverty; Inequality; Mobility; Polarization;
Find related papers by JEL classification:
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-HPE-2009-11-07 (History & Philosophy of Economics)
- NEP-LTV-2009-11-07 (Unemployment, Inequality & Poverty)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePEc Maintainer).
If references are entirely missing, you can add them using this form.