We introduce state dependent recursive preferences into the Mehra-Prescott economy. We show that such preferences can match the historical first two moments of the returns on equity and the risk free rate. Other authors have reported similar results using state dependent expected utility...

Lucas (2003) argues that the potential welfare gains from stabilizing the business cycle are small. In fact, he shows that the benefits of eliminating all economic fluctuations are small, both in an absolute sense and when compared to the potential gains from other reforms. His estimates are...

I examine the effects of the introduction of the Spouse's Allowance to the Canadian Income Security system on the retirement behavior of couples. This policy intervention provides an excellent opportunity to investigate how income security programs affect the timing of retirement. The structure...

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The correlation of occupational gender composition and wages is the basis of pay equity/comparable worth legislation. A number of previous studies have examined this correlation in US data, identifying some of the determinants of low wages in ``female jobs'', as well as important limitations of...

Several recent studies have found that earnings inequality in Canada has grown considerably since the late 1970's. Using an extraordinary data base drawn from longitudinal income tax records, we decompose this growth in earnings inequality into its persistent and transitory components. We find...