This paper develops a new method for solving both equity premium and risk free rate puzzles based on the standard utility function. The method for solving the equity premium puzzle in accordance with Mehra and Prescott (1985) needs to be simultaneously consistent with the method for solving the...

The Human Income-Expenditure Balance -- Fundamentals of the Theory of Diminishing Utility -- Analysis of a Non-Monetary Economy -- Extension to Analysis of a Monetary Economy -- Human Psychology and Economic Fluctuation -- The Effectiveness of Aggregate Demand Management Policy -- Dynamic...

This book incorporates human psychology into economic analysis. It constructs a new basic structure model of economic circulation, analyzes the direct relationship between human psychology and economic fluctuation, and provides a framework in which output and the allocation of resources are...