BANSAL, RAVI; KIKU, DANA; SHALIASTOVICH, IVAN; YARON, AMIR - In: Journal of Finance 69 (2014) 6, pp. 2471-2511
type="main" <title type="main">ABSTRACT</title> <p>How important are volatility fluctuations for asset prices and the macroeconomy? We find that an increase in macroeconomic volatility is associated with an increase in discount rates and a decline in consumption. We develop a framework in which cash flow, discount rate, and...</p>