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Dynamic binomials with an application to gender bias analysis

Published online by Cambridge University Press:  24 March 2016

Eva Ferreira
Affiliation:
Department of Applied Economics III & BETS, Faculty of Economics and Business Studies, University of the Basque Country, Avenida Lehendakari Aguirre 83, 48015 Bilbao, Spain.

Abstract

We analyze the dynamics of a stochastic process driven by binomial random variables, where the probability of success depends on the past realization. We study the limit behavior when the group size is fixed but the number of iterations increases. It will become apparent that the so-called policy function and its fixed point play an outstanding role. Some applications to a statistical analysis of gender bias are also briefly discussed.

Type
Research Papers
Copyright
Copyright © Applied Probability Trust 2016 

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