Skip to main content Skip to main content
SHARE   Share on Twitter Share on Facebook Email

Interpreting Life-Cycle Inequality Patterns as an Efficient Allocation: Mission Impossible?

The life-cycle patterns of consumption, wage and hours inequality observed in U.S. cross-section data are commonly viewed as incompatible with a Pareto efficient allocation. We determine the extent to which these qualitative and quantitative patterns can or cannot be produced by Pareto efficient allocations in models with preference shocks, wage shocks and full information.

Read Full Text (587K)


Subscribe to our newsletter


Follow us

Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo
Back to Top