Abstract
This work treats the construction of a mobility index able to grasp the prevailing
direction in the dynamics ruled by a given transition matrix. The states of
the matrix are based on an ordered economic variable, such as firm size, income
or ratings, for which the future state can be better or worse than the current one.
We propose here a whole family of directional indices, evaluated as a function
of the transition matrix, and defined 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.
| Original language | English |
|---|---|
| Publisher | ISU - Università Cattolica del Sacro Cuore |
| Number of pages | 18 |
| Publication status | Published - 2012 |
Keywords
- Mobility Index
- Prevailing Direction