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richer workers demand more low skill-intensive services (such as cleaning and personal services) but also more skill …-intensive services (such as education and professional services). The parametrization of a simple model suggests that this induced demand …
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"In this paper we revisit two well-known facts regarding lifecycle expenditures. The first is the familiar "hump" shaped lifecycle profile of nondurable expenditures. We document that the behavior of total nondurables masks surprising heterogeneity in the lifecycle profile of individual...
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