Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185885 
Year of Publication: 
2008
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 144 [Issue:] 2 [Publisher:] Springer [Place:] Heidelberg [Year:] 2008 [Pages:] 117-151
Publisher: 
Springer, Heidelberg
Abstract: 
Based on a relative entropy approach, this paper proposes a method to estimate or update transition matrices using just cross-sectional observations at two points in time. The method is then applied to explain the development of the US income distribution. Starting from three hypothesized transition matrices and a transition matrix estimated from the PSID data, we show how these matrices must be adjusted in the light of the cross-sectional information. Finally, we explore the consequences of these updated transition matrices for the future development of the US income distribution.
Subjects: 
income distribution
income dynamics
relative entropy
JEL: 
D31
C51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
301.18 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.