contractionary effect of a reallocative shock should come from the direct aggregate effect of the underlying shock and not from human …

equity capital to the risk-free interest rate. When equity capital falls, bankruptcy risks rise. Firms become more vulnerable … long time. -- liquidity trap ; financial crisis ; rare disasters ; equity capital ; leverage ; bankruptcy risk …

estimate "macro risk factors" that drive "bad" (negatively skewed) and "good" (positively skewed) variation for supply and … significantly contribute to the variation yields, risk premiums and return variances for nominal bonds. While overall bond risk … premiums are counter-cyclical, an increase in demand variance lowers risk premiums …

investors' effective risk aversion. Using this utility function, we extend the "no good deals" methodology of Cochrane and Saá …

shocks to the first and second moments of idiosyncratic risk on macroeconomic outcomes. An increase in demand uncertainty …