equity premium involves a race between `alpha` and the coefficient of relative risk aversion, `gamma`. A higher `alpha …

by at least 10%. The principal world economic crises ranked by importance are World War II, World War I and the Great … Depression, the early 1920s (possibly reflecting the influenza epidemic of 1918-20), and post-World War II events such as the …" coefficient of relative risk aversion of 3.5. This result is robust to a number of perturbations, except for limiting the sample …

relative risk aversion. High stock-price volatility can be explained by incorporating time-varying long-run growth rates and …