Question
Consider two workers with identical preferences, Paapa and Ben. Both workers have the same life cycle wage path in that they face the same wage
Consider two workers with identical preferences, Paapa and Ben. Both workers have the same life cycle wage path in that they face the same wage at every age, and they know what their future wages will be. Leisure and consumption are both normal goods.
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
