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Discrete regional distributional dynamics revisited

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  • Sergio J. Rey

Abstract

Discrete Markov chain theory has played a major role in the literature on regional income distributional dynamics. This paper examines a selection of methodological issues and choices related to the implementation of this framework, focusing on: [1] specification of class-state boundaries; [2] use of population weighted or unweighted transitions; and [3] conditioning to incorporate spatial effects. Empirical evidence on the individual, as well as joint, effects of these choices are provided in a case study of Us regional incomes from 1929-2011. Measures of income mobility in Us distribution dynamics are found to be strongly influenced by the choice of population weighting, specification of class boundaries, and the measurement of inter versus intra-regional conditioning.

Suggested Citation

  • Sergio J. Rey, 2015. "Discrete regional distributional dynamics revisited," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(1), pages 83-104.
    • Handle: RePEc:cai:rerarc:reru_151_0083
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    Cited by:

    1. Rey, Sergio, 2015. "Bells in Space: The Spatial Dynamics of US Interpersonal and Interregional Income Inequality," MPRA Paper 69482, University Library of Munich, Germany.
    2. Carlos Mendez & Felipe Santos‐Marquez, 2021. "Regional convergence and spatial dependence across subnational regions of ASEAN: Evidence from satellite nighttime light data," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1750-1777, December.
    3. Sergio J. Rey & Wei Kang & Levi Wolf, 2016. "The properties of tests for spatial effects in discrete Markov chain models of regional income distribution dynamics," Journal of Geographical Systems, Springer, vol. 18(4), pages 377-398, October.
    4. Wei Kang & Sergio J. Rey, 2018. "Conditional and joint tests for spatial effects in discrete Markov chain models of regional income distribution dynamics," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 73-93, July.

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