empirical proxy of an aggregate shock to the cost of equity issuance, which we interpret as a financial shock. We show that this … shock captures systematic risk, and that exposure to this shock helps price the cross section of stock returns including …

by a shock that does not affect productivity in the short run -- and therefore does not look like a standard technology … shock -- but affects productivity with substantial delay -- and therefore does not look like a monetary shock. One … structural interpretation we suggest for this shock is that it represents news about future technological opportunities which is …