Reconciling Estimates of Income Processes in Growth Rates and Levels

It has been recently documented that the estimates of income processes using the moments for log-incomes in levels and differences deviate substantially. This has important quantitative implications for calibrated macro models. We propose a specification of the income process consistent with the moments in levels and growth rates, and estimate it using administrative data on labor incomes of Danish males for the period 1981--2006.

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Year of publication:	2011
Authors:	Manovskii, Iourii ; Hryshko, Dmytro ; Daly, Moira
Institutions:	Society for Economic Dynamics - SED

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Extent:	application/pdf
Series:	2011 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2011 SED Meeting Papers Number 1319
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011081298