Battistin, Erich; Blundell, Richard; Lewbel, Arthur - 2007
Significant departures from log normality are observed in income data, in violation of Gibrat’s law. We identify a new … log normal than the distribution of income. We explain these empirical results by showing that the logic of Gibrat’s law … applies not to total income, but to permanent income and to maginal utility. These findings have important implications for …