Giacomo De Giorgi, Anders Frederiksen, Luigi Pistaferri

NBER Working Paper No. 22357
Issued in June 2016

---- Acknowledgments ----

We thank Orazio Attanasio, Chris Carroll, Nicola Fuchs-Schuendeln, Soren Leth-Petersen, Magne Mogstad, Petra Persson, Nick Roussanov, Dan Silverman, Nick Souleles, Adam Szeidl, and seminar participants at several seminars and conferences in Europe and the US for comments. Financial support from the Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2011-0075) and ECO2011-28822, the EU through the Marie Curie CIG grant FP7-631510 (De Giorgi), the ERC starting grant 284024 and the NSF grant 1458536 (Pistaferri) is gratefully acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York, the Federal Reserve System, or the National Bureau of Economic Research.

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