Favero, Carlo A.; Gozluklu, Arie E.; Yang, Haoxi - IGIER (Innocenzo Gasparini Institute for Economic … - 2011
In this paper we relate the very persistent component of interest rates to a specific demographic variable, MYt, the proportion of middle-aged to young population. We first reconsider the results in Fama (2006) to document how MYt captures the long run component identified by Fama in his...