We introduce two modifications into the standard real business cycles model: habit persistence preferences and limitations on intersectoral mobility. The resulting model is consistent with the observed mean equity premium, mean risk free rate and Sharpe ration on equity. With respect to the...

It has been argued that concave models exhibit less ‘endogeneity of growth’ than models with increasing returns to scale. Here we study a simple model of factor saving technological improvement in a concave framework. Capital can be used either to reproduce itself, or, at some additional...

In this paper, we model an overlapping generation economy affected by an unexpected immigration shock and determine how households may insure themselves against “immigration risk”. We use the model to study the impact of immigration on (i) the welfare of different generations, (ii) the...

In this paper we analyze the relationship between the employment of the young, exit of older people and retirement incentives using data from both the Spanish labor force survey and the Muestra Contínua de Vidas Laborales. Against a priori expectations, we do find some (weak) evidence of...