Discrete Dynamics in Nature and Society
Volume 2007 (2007), Article ID 71742, 15 pages
Research Article

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

Ahmet Kara

Department of Economics, Fatih University, Büyükçekmece 34500, Istanbul, Turkey

Received 26 January 2007; Accepted 31 July 2007

Copyright © 2007 Ahmet Kara. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


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.