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Dominik, Sachs ; Dominik, Sachs ; Sebastian, Findeisen ; Sebastian, Findeisen. (2015) Redistribution and Insurance with Simple Tax Instruments.
In: IZA Discussion Papers. RePEc:iza:izadps:dp9123.

Full description at Econpapers

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We next discretize the earnings distribution. Thus for each simulated life, we then have 3 grid points; one for each period. With a standard kernel smoother (bandwidth of $2,500), 0 20 40 60 80 100 120 140 160 180 200 0.005 0.01 0.015 0.02 0.025 0.03 0.035 0.04 0.045 Densities Income, 1000s 24−36 37−49 50−62

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