Basu, Susanto; Candian, Giacomo; Chahrour, Ryan; … - National Bureau of Economic Research - 2021
We identify a shock that explains the bulk of fluctuations in equity risk premia, and show that the shock also explains … contract workers. A real model with labor market frictions and fluctuations in risk appetite can explain all of these facts …, both qualitatively and quantitatively. The size of risk-driven fluctuations depends on the relationship between the …