Title: Housing, home production, and the equity and value premium puzzles
Description: "We test if a standard representative agent model with a home-production sector can resolve the equity premium or value premium puzzles.  In this model, agents value market consumption and a home consumption good that is produced as an aggregate of the stock of housing, home labor, and a labor-augmenting technology shock.  We construct the unobserved quantity of the home consumption good by combining observed data with restrictions of the model.  We test the first-order conditions of the model using GMM.  The model is rejected by the data; it cannot explain either the historical equity premium or the value premium"--Federal Reserve Board web site.