Article ID Journal Published Year Pages File Type
11023390 Economics Letters 2018 11 Pages PDF
Abstract
This paper suggests a persistent income process specification where income flows may shift during the year. The variance of persistent shocks is shown to be consistently estimated also with traditional specifications restricting shocks to occur only between years.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Income dynamics when shocks occur during the year
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