Battistin, Erich; Blundell, Richard; Lewbel, Arthur - In: Journal of Political Economy 117 (2009) 6, pp. 1140-1154
Significant departures from log normality are observed in income data, in violation of Gibrat's law. We show empirically that the distribution of consumption expenditures across households is, within cohorts, closer to log normal than the distribution of income. We explain this empirical result...