We study asset-pricing implications of innovation in a general-equilibrium overlapping-generations economy. Innovation … capital of older workers. Due to the lack of inter-generational risk sharing, innovation creates a systematic risk factor …

Booming innovation often coincides with intense speculation in financial markets. Using over a million patents, we … document two ways the market valuation of innovation and its economic impact become disconnected during bubbles. Specifically …, an innovation raises the stock price of its creator by 40% more than is justified by future outcomes. In contrast …

hypothesis is true, the variance of the innovation in the stock price is bounded above by a certain function of the variance in … the innovation in the dividend. The bound is valid even if prices and dividends are nonstationary.The inequality is used … stock price innovation variance exceeding its theoretical upper bound by a factor of as much as twenty. The rejection is …

We test how market overvaluation affects corporate innovation. Estimated stock overvaluation is very strongly …

We quantify the effect of a significant technological innovation, shale oil development, on asset prices. Using stock …