Lambertini, LuisaAzariadis, Costas2007-07-162007-07-162007-07-16200210.1257/000282802320189131https://infoscience.epfl.ch/handle/20.500.14299/9500This 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.text::journal::journal article::research article