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In response to income fluctuations, households smooth consumption by substituting between market expenditure and time inputs. This paper provides evidence of this substitution in the context of food consumption over transitory and permanent income fluctuations in Mexico. Household time...
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total consumption budget, expenditure shares for positional goods/services will decrease during a recession, while shares … for nonpositional goods/services will increase (i.e., shifting the entire Engel curve upward or downward, depending on the …
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