EXISTENCE OF UNIQUE LIMITING PROBABILITY VECTORS IN STOCHASTIC PROCESSES WITH MULTIPLE TRANSITION MATRICES

Journal of Agricultural and Resource Economics · Volume 17, Issue 2, December 1992 · Pages 303–313

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Abstract

Concepts associated with stochastic process containing multiple transition matricies are discussed. It is proved that under certain conditions, a process with m transition matrices has m unique limiting probability vectors. This result extends the notion of discrete Markov processes to problems with intrayear and interyear dynamics. An example using a large DP model illustrates the usefulness of the concepts developed to applied problems.

Article details

Issue
Volume 17, Issue 2
Published
December 1992
Pages
303–313
Full text
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