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elasticity of substitution in market consumption (IES) and the static elasticity of substitution between home and market … consumption (SES). Understanding this connection is important because there is a large body of empirical evidence suggesting that …
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Inspired by the recent literature on aggregation theory, this paper introduces HITS, a semiparametric model of consumer demand that allows for diversity in tastes. The strong variation of budget shares observed aacross income strata can arise from two economic factors: the individual income...
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