Life-Cycle Model 27 demos how to use the Guvenen, Karahan, Ozkan & Song (2021) earnings processes. My new article explains the discretization method, and the implications.
doi.org/10.1007/s429...
doi.org/10.1007/s429...
Discretizing earnings dynamics: implications of Gaussian-mixture shocks for life-cycle models - The Japanese Economic Review
The standard AR(1) process with gaussian innovations, commonly used in life-cycle models of earnings dynamics, has proven insufficient. Recent research highlights the age-dependent and non-Gaussian na...
doi.org
March 30, 2025 at 8:04 PM
Life-Cycle Model 27 demos how to use the Guvenen, Karahan, Ozkan & Song (2021) earnings processes. My new article explains the discretization method, and the implications.
doi.org/10.1007/s429...
doi.org/10.1007/s429...