This paper analyzes the maturity structure of term premia using McCulloch's yield curve data from 1953-91 under both constant and time-varying expected returns assumptions. Time-varying expected returns are computed as linear projections of one-, three-, six-, and twelve-month holding period...

The paper develops an efficiency-wage model in which input prices affect the equilibrium rate of unemployment. We show that a simple framework based on only two prices (the real price of oil and the real rate of interest) is able to explain the main postwar movements in the rate of U.S....

This paper proposes a new way to think about happiness. It distinguishes between stocks and flows. Central to the analysis is a concept we call 'hedonic capital'. The paper sets out a model of the dynamics of wellbeing in which bad life-shocks are smoothed by the drawing down of hedonic capital....