fertility, and lower investment in physical and human capital. Furthermore, the feedback effect from economic prosperity to …

choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a 'global risk … risk can reduce the amount invested in the risky option. This result cannot be explained by classical Expected Utility or …

equilibrium version of the model with heterogeneous investors who are familiar with different assets, we find that the risk … premium of stocks depends on both systematic and idiosyncratic volatility, and that the equity risk premium is significantly …

to learn about the future affects their consumption-savings decision. The equity premium falls and the risk-free interest …, the correlation between consumption and investment growth is 0.29 when households have no information about the future …

This paper provides evidence for a causal effect of equity prices on corporate investment and employment. We use fire … whose stocks are most underpriced have considerably lower investment and employment than industry peers not subject to any … fire sale discount. The causal effect of underpricing on investment is found to be largely concentrated on the most …

finds that common shocks--key crisis events as well as changes to global liquidity and risk--have exerted a large effect on … risk and the strength of domestic macroeconomic fundamentals. Comparing and quantifying these effects shows that common …