Mehra, Rajnish; Sah, Raaj - Harris School of Public Policy, University of Chicago - 1999
, their discount factors and attitudes towards risk) on the volatility of equity prices. We briefly summarize some of the …-form expression for equilibrium equity prices, and use this expression to map the fluctuations in investors' subjective preferences to … the fluctuations in equity prices. Our analysis suggests that small fluctuations in the discount factor have potentially …