| Description |
-
This paper finds that machine learning can overcome the life-cycle
bias in the process of estimating permanent income, where the permanent income is
defined as at least 5-years' average income between 30 and 40. In order to measure
the impacts of external shocks, the Bush Tax cuts and economic recession, on
intergenerational mobility, dividend income is chosen as identification strategy.
This ... read morequasi-experiment shows that economic recession brought about a heterogeneous
decrease in mobility by 35.7%, and the Bush Tax Cut at 2003 brought about a
heterogeneous decrease in mobility by 16.9%. Though the effect of the tax cut is
not significant, it might be caused by an inaccurate estimated error in the OLS
regression. In addition, this paper finds that any instrumental variables used in
the estimation are not supposed to be used in the second stage
regression.
Thesis (M.S.)--Tufts University, 2019.
Submitted to the Dept. of Economics.
Advisor: Jeffrey Zabel.
Committee: Yannis Ioannides.
Keywords: Economics, and Labor economics.read less
|
|---|
This object is in collection
