Aebi, Robert; Neusser, Klaus; Steiner, Peter - In: Swiss Journal of Economics and Statistics 144 (2008) 2, pp. 117-151
Based on a relative entropy approach, this paper proposes a method to estimate or update transition matrices using just cross-sectional observations at two points in time. The method is then applied to explain the development of the US income distribution. Starting from three hypothesized...