Galtonian regression of intergenerational income linkages : biased procedures, a new estimator and mean-square error comparisons

Détails

ID Serval
serval:BIB_74598FEF165A
Type
Livre: un livre et son éditeur.
Collection
Publications
Titre
Galtonian regression of intergenerational income linkages : biased procedures, a new estimator and mean-square error comparisons
Auteur⸱e⸱s
Abul Naga  Ramses H.
Editeur
Université de Lausanne Ecole des HEC/DEEP
Lieu d'édition
Lausanne
Statut éditorial
Publié
Date de publication
2000
Série
Cahiers de recherches économiques
Notes
/ Ramses H. Abul Naga
Date de publication : 2000
Signature indexation : ind 20070201
Collection_ISBD : (Cahiers de recherches économiques ; no 00.13 )
2007/2/1
Monographie | Bibliothèque : DI Hospices/CHUV | Cote : PUB-WP | N° 60347
26 p.
Abul Naga, Ramses H.
Collection : Cahiers de recherches économiques ; no 00.13
Résumé
Because the permanent incomes of parents are children are typically unobserved, the estimation of the intergenerational correlation via the use of proxy variables entails an errors-in-variables bias. By solving a system of moment equations for income observed at a given year, and a T-period average of this variable, we derive an analytical form for the signal to total variance ratio. In turn, we propose a simple estimator of the intergenerational elasticity via division of the OLS estimator by this quantity. Estimates of the intergenerational elasticity derived from a PSID sample range between 0.34 and 0.69. The averaging estimator provides intermediary values between OLS and the proposed estimator. Persistence is higher for family income measures than labor market outcomes. Estimates generally increase for moving average specifications in comparison to the assumption that measurement errors are uncorrelated. The three estimators are further examined in the light of their mean-square errors (square bias plus variance).
Mots-clé
Income Intergenerational Relations
Création de la notice
19/11/2007 10:33
Dernière modification de la notice
20/08/2019 14:32
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