A note on the estimation of intergenerational income correlations by the method of averaging

Détails

ID Serval
serval:BIB_77EB15BE1F7B
Type
Rapport: document publié par une institution, habituellement élément d'une série.
Collection
Publications
Titre
A note on the estimation of intergenerational income correlations by the method of averaging
Auteur(s)
Abul Naga Ramses H.
Editeur
Université de Lausanne, Ecole HEC-DEEP
Institution
Cahiers de recherches économiques
Adresse
Lausanne
Date de publication
2000
Nombre de pages
8 p.
Notes
Mention de responsabiblité : / Ramses H. Abul Naga
SAPHIRID:60346
Résumé
Averaging methods are routinely used in order to limit biases resulting from the mismeasurement of permanent incomes. The Solon/Zimmerman estimator regresses a single-year measurement of the child's resources on a T-period average of the parents' income while the Behrman/Taubman estimator regresses an S-period average of the child's resources on a T-period average of the parents' income. The latter estimator is shown to be the arithmetic mean of the S slope estimates arising from the Solon/Zimmerman methodology. However, because sampling variation produces yearly changes in the variance of children's incomes, it is shown that the Behrman/Taubman estimator is not efficient in the class of estimators which can be expressed as a weighted sum of the S distinct Solon/Zimmerman estimates. The minimum variance estimator in the above class is thus derived and applied to a US sample. [Author]
Mots-clé
Income , Intergenerational Relations
Création de la notice
14/03/2008 11:21
Dernière modification de la notice
03/03/2018 18:28
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