We build a model for bond yields based on a small-scale representation of an economy with secular declines in inflation … bond yields via the term premium. …

account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … display a higher CAPM beta; and (d) households' portfolios change qualitatively. A log-utility investor for instance borrows …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … display a higher CAPM beta; and (d) households' portfolios change qualitatively. A log-utility investor for instance borrows …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … display a higher CAPM beta; and (d) households' portfolios change qualitatively. A log-utility investor for instance borrows …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … display a higher CAPM beta; and (d) households' portfolios change qualitatively. A log-utility investor for instance borrows …