We develop a model which accounts for the observed equity premium and average risk-free rate, without implying counterfactually high risk aversion. The model also does well in accounting for business-cycle phenomena. With respect to the conventional measures of business-cycle volatility and...

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...