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We extend the canonical income process with persistent and transitory risk to shock distributions with left-skewness and excess kurtosis, to which we refer as higherorder risk. We estimate our extended income process by GMM for household data from the United States. We find countercyclical...
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We extend the canonical income process with persistent and transitory risk to shock distributions with left-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household data from the United States. We find countercyclical...
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This article provides new insights into the cyclical behavior of consumer and producer real wages in the USA and … cyclical patterns over time. From the findings of our study, we can infer that the USA and Germany differ with respect to the … lead-lag relationship of real wages and the business cycle. In the USA, both real wages are leading the business cycle in …
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