Cocco, João F. (contributor) - 2000 - [Elektronische Ressource]
1
London Business School, Regent’s Park, London NW1 4SA, UK, Tel.: (020) 7262-5050, Fax: (020) 7724-
3317. E … exogenously given by:
ey
it
= f(t,Z
it
)+eu
it
(3)
where f(t,Z
it
) is a deterministic function of age, t, and other individual … characteristics, Z
it
,
and
e
u
it
can be decomposed into an aggregate and idiosyncratic components:
eu
it
= eη
t
+ eω
it
. (4)
I …