Adema, Yvonne; Bonenkamp, Jan; Meijdam, Lex - 2011 - This version: February 4, 2011
weakened - and under some conditions even turned around - if not only capital market risks but also productivity risks are … considered. Productivity risk in combination with a high elasticity of substitution between consumption and leisure creates a … positive correlation between asset returns and labour income, reducing the willingness of consumers to bear risk. Moreover, it …
