What is the fundamental value of a stock? Do stock prices deviate from this fundamental value? If yes, do they go back to their fundamental value? This paper proposes to answer these three questions by using a stock valuation model based on the Consumption-Capital Asset Pricing Model (C-CAPM)...

The large spread between equity returns and risk free rates observed in most stock markets (the "equity premium puzzle") has been subject of intense debates. Two main families of models claim to solve this puzzle: habit formation models and loss aversion models. The goal of this paper is to...

Our aim is to give an axiomatization of preferences over infinite consumptionstreams. At first we adopt the additive case, and give a characterization of pref-erences which satisfy patience (Marinacci (1998)) or equivalently what Diamond(1965) named equal treatment of all generations. We then...