A Stochastic Simulation Model Of Family Income

Abstract

This paper describes a stochastic simulation model of family income. Our goal is to implement a stochastic simulation experiment which provides an alternative view on the declining trend of U.S. real family income suggested in the joint study by The Children's Defense Fund and The Northeastern University's Center For Labor Studies. Thus, a major part of this paper is the development of the simulation model of family income. Also the simulation experiment will extensively rely on the modern computer algebra system Mathe- matica.