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"A representative-consumer model with Epstein-Zin-Weil preferences and i.i.d. shocks, including rare disasters, accords with key asset-pricing observations. If the coefficient of relative risk aversion equals 3-4, the model accords with observed equity premia and risk-free real interest rates....
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A representative-consumer model with Epstein-Zin-Weil preferences and i.i.d. shocks, including rare disasters, accords with key asset-pricing observations. If the coefficient of relative risk aversion equals 3-4, the model accords with observed equity premia and risk-free real interest rates. If...
Persistent link: https://www.econbiz.de/10012464956
A representative-consumer model with Epstein-Zin-Weil preferences and i.i.d. shocks, including rare disasters, accords with key asset-pricing observations. If the coefficient of relative risk aversion equals 3-4, the model accords with observed equity premia and risk-free real interest rates. If...
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productivity of capital. It is shown that, if the savings rate and also the distribution of income between wage and profit are … constant, the ratio mentioned remains constant or increases if the average productivity of capital respectively does not change … capital fluctuate within certain limits over a sufficiently large number of production cycles. In each case, the number of …
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