This report summarizes the main outcomes of the project "Macroeconomic Modelling of Sustainable Development and the Links between the Economy and the Environment". Much more details can be found in the subtask reports. A reference to these detailed reports is given at the beginning of each...

This paper reexamines the Equity Premium Puzzle for the German stock market with control for inflation and taxation. Two methods for relaxing the assumption of aggregate consumption being equal to aggregate dividends are compared: the leverage approach and the usage of a bivariate stochastic...