2 papers
econ.GN2026
Indirect Variational Inference: Applications to Earnings Dynamics
Neele Balke, Stephane Bonhomme, Thibaut Lamadon
Latent-variable models are central to economics but often entail intractable integration. Variational inference (VI), widely used in machine learning, turns this integration into t…
econ.GN2026
A Users' Guide to Uncovering Worker and Firm Effects: The ABC of AKM
Stephane Bonhomme, Elena Manresa, Thibaut Lamadon
The AKM model introduced by Abowd, Kramarz and Margolis (1999) has become a workhorse to study worker and firm heterogeneity, and to understand the sources of wage dispersion in th…