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Modelling lifecycle labour supply and asset holding with fixed costs
Date started: 01 November 2003
The research develops models of life-cycle consumption, labour supply and savings with fixed costs of labour force participation and other non-convexities. These non-convexities have important impacts on household intertemporal decision problems because they result in households making choices about consumption, labour force participation, and housing tenure that exhibit discrete jumps in response to changes in the economic environment.

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