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We estimate an empirical model of consumption disasters using a new panel data set on personal consumer expenditure for … consumption of about 30%, but that roughly half of this decline is reversed in a subsequent recovery. Uncertainty about … consumption growth increases dramatically during disasters. Our estimated model generates a sizable equity premium from disaster …
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will be nil. With heterogeneity in coefficients of relative risk aversion, safe assets can take the form of private bond …
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will be nil. With heterogeneity in coefficients of relative risk aversion, safe assets can take the form of private bond …
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