Excess Asset Returns with Limited Enforcement
在三期纯交换世代交叠经济中研究合约有限执行对资产回报的影响，发现缺乏承诺会显著影响安全资产和风险资产的回报率，并可能产生较大的股权溢价。
This paper investigates the effect of limited enforcement of contracts on asset returns in a three-period pure- exchange overlapping generations economy. We consider a life-cycle setting with a safe and a risky asset and find that lack of commitment can significantly affect the rate of returns of these assets and possibly generate large equity premia.