growth. At early stages of development, the presence of indivisible projects limits the degree of risk …This paper offers a theory of development which links the degree of market incompleteness to capital accumulation and … inability to diversify idiosyncratic risks introduces high uncertainty in the growth process. The typical development pattern …

changes in real GDP, the stock market, country credit ratings, and the exchange rate. We explore the linkages between these …

combines 2008 changes in real GDP, the stock market, country credit ratings, and the exchange rate. We explore the linkages …

We analyze how changes in government policy affect stock prices. Our general equilibrium model features uncertainty … policy after performance downturns in the private sector. Stock prices fall at the announcements of policy changes, on … change is preceded by a short or shallow downturn. Policy changes increase volatility, risk premia, and correlations among …

stock markets. Our technique is tightly based on a general intertemporal asset-pricing model, and relies on estimating and … comparing expected risk-free rates across assets. Expected risk-free rates are allowed to vary freely over time, constrained … only by the fact that they are equal across (risk-adjusted) assets. Assets are allowed to have general risk characteristics …

arbitrarily over time. A novel feature of our technique is that it relies upon exploiting idiosyncratic risk, since theory … through 2003, and daily data for 2003. Both datasets include assets from three different markets: the New York Stock Exchange …, the NASDAQ, and the Toronto Stock Exchange. For both monthly and daily frequencies, we find plausible estimates of EMRS …

in the world in a few decades. Now China is returning to its historical past. To understand China’s development, and to …