MARKOV CHAIN ANALYSIS IN GEOGRAPHY: AN APPLICATION TO THE MOVEMENT OF RENTAL HOUSING AREAS

Markov chains are among probability processes which can be used to analyze movements of units through time. Definitions and theorems associated with Markov chains are kept to a minimum, and the usefulness of the transition probabilities to describe the movements of variables is emphasized. Derivation of transition probabilities and the transition probability matrix are described in detail. An example of the movements of central city census tracts based on the average contract rents of rental housing is presented. Possible applications of transition probabilities are suggested in the conclusion.