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Comparing inequality and mobility in linear models: Comment
- Di Pietro, Christian, Sorge, Marco M.
- Economics letters 2018 v.172 pp. 56-58
- capital, income, linear models, risk, stochastic processes
- This comment shows that Peng (2018)’s Theorem 2 requires amendment. A new set of (relatively stricter) assumptions is provided, under which Peng (2018)’s findings –in particular, the asymmetric impact of capital and income risk on wealth mobility –hold true, and the approach developed therein proves suited for comparing stationary distributions of linear stochastic models.