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Estimation Uncertainty and the Equity Premium
Yan, Hong - 2009
This paper studies a dynamic equilibrium model of asset prices in a partially observable exchange economy. It shows that the precautionary savings motive in response to estimation uncertainty can dominate the risk aversion effect, resulting in the reduction of the equity premium over short...
Persistent link: https://www.econbiz.de/10013157015
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The Sensitivity of Risk Premiums to the Elasticity of Inter-Temporal Substitution
Wu, Zhiting - 2021
utility. My additional finding is that intertemporal substitution elasticity is more sensitive to asset prices given the …
Persistent link: https://www.econbiz.de/10013247585
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Red Tape Asset Pricing
de Oliveira Souza, Thiago - 2019
The equity premium–risk-free rate puzzle in standard consumption-based asset pricing models disappears once we remove the government-imposed component from the consumption expenditure series. I calibrate this component based on the growth rates of two proxies for government intervention, which...
Persistent link: https://www.econbiz.de/10012897006
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Consumption, Government Failure, and Asset Prices
de Oliveira Souza, Thiago - 2019
The equity premium-risk-free rate level and predictability puzzles in standard power utility consumption-based asset pricing models disappear once we remove the government-imposed component from the consumption expenditure series. I calibrate this component based on the growth rates of two...
Persistent link: https://www.econbiz.de/10012899070
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Money Multipliers’ Behavior in Developing Economies
Gursel, Haluk Ferden - 2019
In this work, behavior of money multipliers for a developing country, Turkey is examined and is calculated by estimating the values of the model constructed for the purpose for the period of 1952-1972. However, model lends itself for applications covering any other period.Study includes three...
Persistent link: https://www.econbiz.de/10012891758
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Pollution Abatement Investment under Financial Frictions and Policy Uncertainty
Fang, Min; Hsu, Po-Hsuan; Tsou, Chi-Yang - 2023
This paper examines how financial frictions and policy uncertainty jointly influence firms' investments in pollution abatement. Our data analyses suggest that financially constrained firms are less likely to invest in pollution abatement and are more likely to release toxic pollutants, with this...
Persistent link: https://www.econbiz.de/10014355864
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Endogenous Crisis and the Economic Paradigm
Sy, Wilson N. - 2012
This paper proposes that the global financial and economic crisis has a single cause underlying all other causes. The single cause is attributed to the economic paradigm which drives individual behaviour, business, government and education. We define the economic paradigm and explain its power...
Persistent link: https://www.econbiz.de/10013109184
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Why Labor Income Shares Seem to Be Constant?
Zuleta, Hernando - 2010
shares are equal to the elasticity of output with respect to factors have had important implications for economic theory …. However, there are various theoretical reasons why the elasticity of output with respect to reproducible factors should be … to the elasticity of output with respect to factors then the labor income share must be negatively correlated with the …
Persistent link: https://www.econbiz.de/10013148910
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Bond premium cyclicality and liquidity traps
Caramp, Nicolas; Singh, Sanjay R. - 2020
Safe asset shortages can expose the economy to liquidity traps. The nature of these traps is determined by the cyclicality of the bond premium. Selfful filling liquidity traps are associated with a counter-cyclical bond premium. Small issuances of government debt crowd out private debt and...
Persistent link: https://www.econbiz.de/10012154516
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Bond Premium Cyclicality and Liquidity Traps
Caramp, Nicolas - 2020
Safe asset shortages can expose the economy to liquidity traps. The nature of these traps is determined by the cyclicality of the bond premium. Self-fulfilling liquidity traps are associated with a counter-cyclical bond premium. Small issuances of government debt crowd out private debt and...
Persistent link: https://www.econbiz.de/10012842573