Asset Returns and Labor Supply in a Production Economy
The introduction of an endogenous labor decision represents a challenge for models that seek to jointly explain asset pricing and business cycle facts. This paper shows that several improvements can be made if a standard real business cycle model is augmented with a novel preference specification that increases the stochastic discount factor volatility and simultaneously reduces the wealth elasticity of labor supply.
Year of publication: |
2014
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Authors: | JACCARD, IVAN |
Published in: |
Journal of Money, Credit and Banking. - Blackwell Publishing. - Vol. 46.2014, 5, p. 889-919
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Publisher: |
Blackwell Publishing |
Saved in:
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