This paper investigates the testable restrictions on the time- series behavior of equity premia implied by a representative agent model whose state- and time-non-separable preferences are subject to taste shocks. The model nests state- and time-separable preferences with and without taste shocks...

We develop a theoretical and an empirical analysis of the impact of imperfect targeting, participation costs and incomplete take-up upon the level of progressivity, vertical equity, horizontal inequity and redistribution exerted by state benefits. For this, we make use of well-known indices of...