NBER WORKING PAPER SERIES BUBBLES, CRISES, AND HETEROGENEOUS BELIEFS
Wei Xiong Working Paper 18905 http://www.nber.org/papers/w1 Page 1 NBER WORKING …

After lying dormant for more than two decades, the rare disaster framework has emerged as
a leading contender to explain facts about the aggregate market, interest rates, and financial …

We study a newly designed survey administered to a large panel of wealthy retail investors.
The survey elicits beliefs that are important for macroeconomics and finance, and matches …

We document a significant positive relation between drought risk and the cost of equity
capital. Our estimation shows that the cost of equity capital is 92 basis points higher for firms …

This article incorporates a time-varying severity of disasters into the hypothesis proposed by
and Barro (2006) that risk premia result from the possibility of rare large disasters. During a …

The havoc brought by extreme weather events triggers well-documented adverse effects on
human health, communities' resources and economic development. In this paper, we focus …

Parameter learning strongly amplifies the impact of macroeconomic shocks on marginal
utility when the representative agent has a preference for early resolution of uncertainty. This …

We analyze how investor expectations about economic growth and stock returns changed
during the February-March 2020 stock market crash induced by the COVID-19 pandemic, as …

We examine the stock market reaction to disasters in potash mines. We use a sample of 55
mining accidents–natural and man-made-worldwide over the period 1986–2019. On …

Past studies typically have focused on whether people perceive more rare risk after
experiencing catastrophic disasters. We show that people can also feel less risk with …