account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross …

accounts for the interaction between temperature, economic growth and risk. The model simultaneously matches the projected … temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity market …

In this paper we show that temperature is an aggregate risk factor that adversely affects economic growth. Our argument … temperature (i.e., temperature betas) contains sharp information about the cross-country risk premium; countries closer to the … Equator carry a positive temperature risk premium which decreases as one moves farther away from the Equator. The differences …

future consumption given investors' information, and consequently influence equilibrium asset prices and risk premia. In …

formation, which generates time-varying risk-aversion and consequently time-variation in risk-premia, is the key channel. These … array of diagnostics suggests that the long run risk model is preferred …

warming, specifically, long-run temperature shifts. We find that global warming carries a positive risk premium that increases … projected temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity …

We show that bond risk-premia rise with uncertainty about expected inflation and fall with uncertainty about expected …

news affects the stochastic discount factor and carries a separate risk premium. In the data, volatility risks are … aggregate wealth and the cross-sectional differences in risk premia. Estimation of our volatility risks based model yields an … negative when volatility risk is ignored. Our model setup implies a dynamics capital asset pricing model (DCAPM) which …