Before revision:  We find that distorting the model to satisfy the original equilibrium condition is strongly preferred by the data and substantially improves the identification of the structural parameters. Tilting also restores key qualitative predictions of the non-linear model such as the endogenous time variation in risk premia, a property which is lost with linearization .
After revision:  We find that distorting the model to satisfy the original equilibrium condition is strongly preferred by the data while the quality of the approximation is yet another reason for the downward bias to estimates of the intertemporal elasticity of substitution and the upward bias in risk aversion .