Modelling income processes with lots of heterogeneity
All empirical models of earnings processes in the literature assume a good deal of homogeneity. In contrast to this we model earnings processes allowing for lots of heterogeneity between agents. We also introduce an extension to the linear ARMA model that allows that the initial convergence to the l...
| Main Authors: | , , |
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| Format: | Working paper |
| Published: |
University of Oxford
2006
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