¹⁶Note that $σ𝜃 = 0.1$ is smaller than the estimate for college graduates estimated in Carroll and Samwick (?) ( $= 0.197 = √0.039$ ) which is used by Cagetti (?). The reason for this choice is that Carroll and Samwick (?) themselves argue that their estimate of $σ𝜃$ is almost certainly increased by measurement error.