Past Event

INET Post Doc/Research Talks: Joachim Mowinckel "Estimating Age, Period and Cohort effects on income inequality in the U.S.: a Maximum Entropy Approach"

A: I can't seem to shake off this tired feeling. Guess I'm just getting old. [Age effect]

B: Do you think it's stress? Business is down this year, and you've let your fatigue build up. [Period effect]

A: Maybe. What about you?

B: Actually, I'm exhausted too! My body feels really heavy.

A: You're kidding. You're still young. I could work all day long when I was your age.

B: Oh, really?

A: Yeah, young people these days are quick to whine. We were not like that. [Cohort effect]


The year you are in equals your year of birth plus your age: the three effects are linearly dependent. Therefore, it is fundamentally impossible to directly estimate the age, period and cohort effects on a dependent variable (such as tiredness) in a standard regression, Social scientists in different fields have tried to tackle the APC model in different ways. I present Browning et al’s Maximum Entropy method and apply it to disentangle the three effects on income inequality within cohorts in the US. I then discuss how to link this to overall cross sectional inequality. This is part of my M.Phil thesis in Economics, supervised by Eric Beinhocker and Ian Crawford.




30 April 2015 15:00 -


INET Oxford

Eagle House, Walton Well Road, Oxford, OX2 6ED