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Identifying an Earnings Process With Dependent Contemporaneous Income Shocks

Dan Ben-Moshe

arXiv 15 Mar 2023 · Econometrics · publishedEconomics Letters (2023) · 1 citations (OpenAlex)

arXiv:2303.08460 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes a novel approach for identifying coefficients in an earnings dynamics model with arbitrarily dependent contemporaneous income shocks. Traditional methods relying on second moments fail to identify these coefficients, emphasizing the need for nongaussianity assumptions that capture information from higher moments. Our results contribute to the literature on earnings dynamics by allowing models of earnings to have, for example, the permanent income shock of a job change to be linked to the contemporaneous transitory income shock of a relocation bonus.

Citation extraction

8
references
10
in-text mentions
8
distinct cited
2
self-citations
1,051
main-text words

appendix boundary found by appendix_command · 32% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Almuzara (2020) `Heterogeneity in transitory income risk', Working Paper0.40511100%
2Ben-Moshe (2018) `Identification of joint distributions in dependent factor models', Econometric Theory 34(1), 134–165 self0.40511100%
3Ben-Moshe (2021) `Identification of linear regressions with errors in all variables', Econometric Theory 37(4), 633–663 self0.40511100%
4Botosaru (2022) `Time-varying unobserved heterogeneity in earnings shocks', Journal of Econometrics0.40511100%
5Botosaru \ Sasaki (2018) `Nonparametric heteroskedasticity in persistent panel processes: An application to earnings dynamics', Journal of Econometrics 2…0.40511100%
6Browning \ Carro (2007) `Heterogeneity and microeconometrics modeling', in0.40511100%
7Meghir \ Pistaferri (2004) `Income variance dynamics and heterogeneity', Econometrica 72(1), 1–320.40511100%
8Marcinkiewicz (1939) `Sur une propriete de la loi de gauss', Mathematische Zeitschrift 44(1), 612–6180.000310%

Showing the top 8 of 8 scored citations.