Before revision:  By comparing our continuous-time price-impact equilibrium model to the analogous Pareto efficient equilibrium model, we show that our model can simultaneously help resolve the interest rate puzzle , the equity premium puzzle, and the stock-price volatility  puzzle.
After revision:  By comparing our continuous-time price-impact equilibrium model to the analogous Pareto efficient equilibrium model, price-impact has an amplification effect on risk-sharing distortions that helps resolve the interest rate puzzle , the equity premium puzzle, and the stock-price volatility puzzle.