Indirect Variational Inference: Applications to Earnings Dynamics -- by Neele L. Balke, Stéphane Bonhomme, Thibaut Lamadon

A previous version of the paper was circulated with the title “How Variational Are Earnings Dynamics?” We thank the Editor Joe Altonji, two anonymous referees, and our discussant Manuel Arellano, as well as the audience of the 2025 Yale conference in honor of Costas Meghir, for helpful comments. This research was supported in part by the Pythia computing cluster at the University of Chicago Booth School of Business, which is funded by the Office of the Dean. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.