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market wealth affect worker output. Exploiting large return variations over time and across investors, we document a 10 … idiosyncratic stock investment returns, and moreover is unexplained by investor-specific liquidity needs. Consistent with the wealth …
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that temporary fluctuations of the U.S. consumption-wealth ratio predict excess returns on international stock markets …
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This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a lender such as a government, central bank, or banking sector is willing to lend infinitely against collateral, explosive asset bubbles can form which exactly offset a bubble in...
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