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The nexus between debt and inequality has attracted considerable scholarly attention in the wake of the global financial crisis. One prominent candidate to explain the striking co-evolution of income inequality and private debt in this period has been the theory of upward-looking consumption...
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In 1960, Working noted that time aggregation of a random walk induces serial correlation in the first difference that … time aggregation has quantitatively large effects. Using new techniques to correct for the problem, I find the estimate for …
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