The paper deals firstly with the assessment of nonfinancial firm’s risk exposure which has been deeply affected in the last two decades by the trend of market globalization and increased competition. In this new scenario we can note the weakening of the traditional separation between risks...

Standard theoretical model cannot generate positive and large real bond risk premium under power utility preferences. Following recent developments in equity premium literature we explore bond premium in a long run risk environment with generalized isoleastic preferences. This approach explains...

Real interest rates, long run risks and business cycles. Standard theoretical model under power utility preferences generates time series for real yields and output that are not consistent with the cyclical properties of the macroeconomic data. In particular real interest rates of the model are...