We examine the increasing variance of earnings of white men over the 1970s and 1980s by focusing on changes in the covariance structure of earnings. Using data from the Michigan PSID from 1969-1987, we find that about half of the increase has arisen from an increase in the variance of the permanent component of earnings and half from an increase in the variance of the transitory component, wher...

International visitor arrivals to Bali are examined using univariate and panel Lagrange Multiplier (LM) unit root tests with one and two structural breaks to ascertain if shocks to the time path of tourist arrivals are permanent or transitory. The univariate LM unit root tests with one and two structural breaks fail to reject the null hypothesis of a unit root in international visitor arrivals ...

Policy, Institutional Factors and Earnings Mobility This paper uses ECHP and OECD data for 14 EU countries to explore the role of labour market factors in explaining cross-national differences in the dynamic structure of earnings: in permanent inequality, transitory inequality and earnings mobility. Based on ECHP, minimum distance estimator is used to decompose earnings inequality into the perm...

The interaction of liqu id ity constraints and a precautionary savings motive in an economy with consumer heterogeneity in the form of non-stationary, un insurab le , idiosyncratic earnings pro cesses re solves the risk free rate puzzle. The general equ ilibrium bu er stock saving model generates interest rates that match empirical regularities when idiosyncratic sho cks contain both persistent...