People like to have a stable living standard from one year to the next. Yet studies show

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People like to have a stable living standard from one year to the next. Yet studies show that the level of consumption drops suddenly, predictably, and significantly at retirement (contrary to Figure 10.9(a)). Why? Can you think of an explanation that is consistent with the approach to saving taken in Section 10.2?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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