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Discrete Stochastic Dynamics of Income Inequality in Education: An Applied Stochastic Model and a Case Study

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  • Ahmet Kara

Abstract

This paper develops a model for the discrete stochastic dynamics of economic inequality-induced outcomes in education and demonstrates, in the context of the Turkish higher education sector, that higher incomes lead to higher performance levels; and hence income inequality matters. The paper formulates a stochastic subsidy policy that could help the sector to escape the low performance equilibria, and that could stabilize the sector at relatively higher performance levels.

Suggested Citation

  • Ahmet Kara, 2007. "Discrete Stochastic Dynamics of Income Inequality in Education: An Applied Stochastic Model and a Case Study," Discrete Dynamics in Nature and Society, Hindawi, vol. 2007, pages 1-15, November.
    • Handle: RePEc:hin:jnddns:071742
    DOI: 10.1155/2007/71742
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