Hansen, Jörgen; Davalloo, Golnaz - 2023
unobserved heterogeneity and serially correlated shocks signicantly exaggerates the state dependence. … of Youth (NLSY97). We allow for three sources of persistence: pure state dependence, time invariant unobserved … heterogeneity and persistence in idiosyncratic, time-varying shocks. We also consider intensity of consumption based on days of use …