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Income dynamics when shocks occur during the year

Author:
Eika, Lasse
Source:
Economics letters 2018 v.173 pp. 27-29
ISSN:
0165-1765
Subject:
income, variance
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.
Agid:
6156862