in theory, empirical tests of the rare disaster explanation are scarce. We estimate a disaster-including consumption …The rare disaster hypothesis suggests that the extraordinarily high postwar U.S. equity premium resulted because … thus provide empirical support for the rare disaster hypothesis, and help reconcile the nexus between real economy and …

in theory, empirical tests of the rare disaster explanation are scarce. We estimate a disaster-including consumption …The rare disaster hypothesis suggests that the extraordinarily high postwar U.S. equity premium resulted because … for the rare disaster hypothesis, and help reconcile the nexus between real economy and financial markets implied by the …