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A new mobility index for transition matrices

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  • C. Ferretti
  • P. Ganugi

Abstract

In this work we construct a mobility index able to grasp the prevailing direction in the evolution of a given set of statistical units. We consider the case of dynamics ruled by a transition matrix, whose states are based on an ordered economic variable (firm size or income, among others) such that the future position of an individual can be better or worse than the current one. The existing indices measure only the absolute value of mobility, without providing information about the main direction in the dynamics. We propose here a whole family of directional indices defined as functions of the transition matrix, so that their absolute value measures the intensity of mobility, and their sign ( $$+/-$$ + / − ) represents the prevailing direction towards improvement/worsening in the dynamics under study. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • C. Ferretti & P. Ganugi, 2013. "A new mobility index for transition matrices," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 22(3), pages 403-425, August.
    • Handle: RePEc:spr:stmapp:v:22:y:2013:i:3:p:403-425
    DOI: 10.1007/s10260-013-0232-9
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    Cited by:

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    2. Elena Bárcena & Olga Cantó, 2018. "A simple subgroup decomposable measure of downward (and upward) income mobility," Working Papers 472, ECINEQ, Society for the Study of Economic Inequality.
    3. Ferretti Camilla, 2021. "Measurement of enterprise mobility among size classes, taking into account business demography," Statistics in Transition New Series, Polish Statistical Association, vol. 22(1), pages 55-73, March.
    4. Francesca Giambona & Laura Grassini & Daniele Vignoli, 2022. "Detecting economic insecurity in Italy: a latent transition modelling approach," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 31(4), pages 815-846, October.
    5. Camilla Ferretti & Giampaolo Gabbi & Piero Ganugi & Pietro Vozzella, 2016. "Rating Trajectories and Credit Risk Migration: Evidence for SMEs," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1615, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    6. Camilla Ferretti, 2021. "Measurement of enterprise mobility among size classes, taking into account business demography," Statistics in Transition New Series, Polish Statistical Association, vol. 22(1), pages 55-73, March.
    7. Camilla Ferretti & Giampaolo Gabbi & Piero Ganugi & Federica Sist & Pietro Vozzella, 2019. "Credit Risk Migration and Economic Cycles," Risks, MDPI, vol. 7(4), pages 1-18, October.

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