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. Author manuscript; available in PMC: 2015 Feb 9.
Published in final edited form as: J Econ Inequal. 2011 Sep;9(3):439–459. doi: 10.1007/s10888-010-9154-z
Model I: (1) εia = μi + νia
(2) νia = ρνi, a−1 + ηia
Model II: (1), (2), plus
(3) ηia = ξia + θξi, a−1
Model III: (2), (3), plus
(1′) εia = μia + νia
(4) μia = μi, a−1 + ωia
 with σμ2=Var(μi1)
Model IV: (2), (3), plus
(1″) εia = μi + aϕi + νia