Domeij, David; Floden, Martin - Economics Institute for Research (SIR), … - 2009
simple random-walk process captures much of the life-cycle dynamics. But we find clear evidence that the true earnings … process is not a random walk. We demonstrate that some estimation methods result in severe upward bias in the estimated … evidence that the
true earnings process is not a random walk. We demonstrate that some estimation
methods result in severe …