We show that volatility movements have first-order implications for consumption dynamics and asset prices. Volatility …

volatility is associated with a rise in discount rates and a decline in consumption. To study the impact of volatility we provide …

mean and volatility of aggregate consumption growth, by a representative agent with a high elasticity of intertemporal … Bansal, Kiku, and Yaron (BKY, 2007a). BY's calibration counterfactually implies that long-run consumption and dividend growth … power of stock prices for future consumption volatility, but implies much greater predictive power of stock prices for …

mean and volatility of aggregate consumption growth, by a representative agent with a high elasticity of intertemporal … Bansal, Kiku, and Yaron (BKY, 2007a). BY's calibration counterfactually implies that long-run consumption and dividend growth … power of stock prices for future consumption volatility, but implies much greater predictive power of stock prices for …