Based on a second-quantized representation of the nonrelativistic Hamiltonian of a system of $N$ electrons with pairwise Coulomb interactions, we demonstrate the exact statistical reduction of the $N$-body problem to a three-dimensional Schr\"odinger equation for the motion of a single active electron with all other $N\ensuremath{-}1$ electrons acting as spectators. As a by-product, three-dimensional Schr\"odinger equations for the ground and excited states of two-electron atoms and ions are derived and the dynamical role of Pauli's exclusion principle is established. The classical limit $\ensuremath{\hbar}\ensuremath{\rightarrow}0$ of the quantal all-electron equations is examined, and the Thomas-Fermi equation including the Amaldi correction is obtained.
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