| Institution: | 1. University of North Carolina at Chapel Hill, U.S.A.;2. Federal Reserve Bank of St. Louis, U.S.A.For helpful comments we thank the editor (Dirk Krueger) and three anonymous referees. We also thank David Blau, V. V. Chari, Larry Jones, Patrick Kehoe, Rodolfo Manuelli, Luigi Pistaferri, José‐Victor Rios‐Rull, Gianluca Violante, Christoph Winter, as well as seminar participants at IFS, Indiana University, Ohio State, University of Minnesota, University of Washington, Western University, Simon Fraser University, Tel Aviv University, Washington State University, York University, the Federal Reserve Bank of Minneapolis, the 2011 Midwest Macro Meetings, the 2011 SED Meetings, the 2011 Cologne Macro Workshop, the 2011 CASEE Human Capital Conference, the 2011 Barcelona Growth Workshop, the 2011 USC‐Marshall mini macro labor conference, and the 2013 QSPS Summer Workshop. |
