Open AccessThe dynamics of social deprivation in Mexico
Author(s) -
José Naranjo Ramírez,
Vivian Kadelbach,
Leovardo Mata Mata
Publication year - 2021
Publication title -
latin american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.391
H-Index - 8
eISSN - 2198-3526
pISSN - 2196-436X
DOI - 10.47872/laer-2021-30-2
Subject(s) - markov chain , ergodic theory , sample (material) , hidden markov model , order (exchange) , markov model , econometrics , state (computer science) , markov process , economics , computer science , artificial intelligence , mathematics , statistics , machine learning , algorithm , finance , mathematical analysis , chemistry , chromatography
This paper aims to model the dynamics of social deprivation in Mexico using a Markovian approach. First, we establish a scenario where a list of items characterizing social deprivation evolves as a first-order Markov chain under the sample period (2002-2012). Then, we estimate latent states and ergodic vectors of a hidden-Markov model to verify the strength of the conclusions drawn from such a scenario. After collecting results from both kinds of analyses, we find a similar pattern of impoverishment. The paper's conclusions state that the evolution of Mexico's deprivation profile may slightly worsen soon.