We construct a new method to solve for asset pricing models when the price-dividend function is analytic. Our method is to assume the price-dividend function is analytic and then to derive a set of conditions that proves the price-dividend function is analytic. We describe the general method and...

Uncertainty about national income growth poses significant macroeconomic risk to households all over the world. To help reduce investors' exposure, researchers have proposed a controversial new set of security markets called macro markets. These international markets would trade long-term claims...

How large are potential benefits from global risksharing? In order to answer this question we propose a new methodology that is closely connected with the empirical growth literature. We obtain estimates of residual risk (growth uncertainty) at various horizons from regressions of...