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This article is a modified and updated version of a speech presented at the Regional Economic Summit, Evansville, Indiana, November 20, 2008.
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The recently developed long-run risks asset pricing model shows that concerns about long-run expected growth and time-varying uncertainty (i.e., volatility) about future economic prospects drive asset prices. These two channels of economic risks can account for the risk premia and asset price...
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“Financial Stability” is a speech given by the author at the Council of State Governments, Southern Legislative Conference Annual Meeting, New Orleans, Louisiana, August 4, 2002.
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