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The distributions we have been studying can be viewed either
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1. as probabilities or
@@ -674,16 +672,15 @@ So for a very large (tending to infinite) population, $\psi_t P^{10}$ also repre
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This is exactly the cross-sectional distribution.
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```{note}
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```{note}
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A cross-sectional frequency measures how a particular variable (e.g., employment status) is distributed across a population at a specific time, providing information on the proportions of individuals in each possible state of that variable.
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```
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````
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(stationary)=
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## Stationary distributions
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As seen in {eq}`fin_mc_fr`, we can shift a distribution forward one
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unit of time via postmultiplication by $P$.
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@@ -698,8 +695,6 @@ P = np.array([[0.4, 0.6],
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Notice that `ψ @ P` is the same as `ψ`.
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Such distributions are called **stationary** or **invariant**.
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(mc_stat_dd)=
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Using $\psi^* = \psi^* P$ and a bit of algebra yields
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$$
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p = \frac{\beta}{\alpha + \beta}
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p = \frac{\beta}{\alpha + \beta}
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$$
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This is, in some sense, a steady state probability of unemployment.
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