I solve an overlapping generations model with stochastic birth and death rates in general equilibrium. I provide sufficient conditions so that the interest rate is decreasing in the birth and increasing in the death rate. If preferences are non-time-separable, stochastic changes in birth and...

We document both theoretically and empirically a major dependence in both the Information Shares (IS) and Component Shares (CS) approaches to the estimation of the price discovery metrics on the errors arising out of the inversion method of the option value to find the implied stock price. We...

The value premium is well established in empirical asset pricing, but to date there is little understanding as to its fundamental drivers. We use a stochastic earnings valuation model to establish a direct link between the volatility of future earnings growth and firm value. We illustrate that...