Regime-switching models can match the tendency of financial markets to often change their
behavior abruptly and the phenomenon that the new behavior of financial variables often …

This paper reviews the status quo of the empirical literature about the elasticity of
intertemporal substitution (EIS) in consumption. Aiming to answer the question what the true …

We propose a new decomposition of the variance risk premium (VRP) in terms of upside and
downside VRP s. These components reflect market compensation for changes in good and …

Though risk aversion and the elasticity of intertemporal substitution have been the subjects
of careful scrutiny, the long-run risks literature as well as the broader literature using …

Product recalls tend to damage the stock price of the recalling firm. This article proposes and
empirically demonstrates that adjustments to prerecall advertising spending can be used as …

I extend the Epstein–Zin-lognormal consumption-based asset-pricing model to allow for
general iid consumption growth. Information about the higher moments—equivalently …

In an intertemporal equilibrium asset pricing model featuring disappointment aversion and
changing macroeconomic uncertainty, we show that besides the market return and market …

We provide new estimates of the importance of growth-rate shocks and uncertainty shocks
for developed countries. The shocks we estimate are large and correspond to well-known …

We investigate how the confluence of technologies can lead to radical innovation, thus
creating opportunities at the firm and industry levels. To do so, we conduct a detailed …

Springer Finance is a programme of books addressing students, academics and
practitioners working on increasingly technical approaches to the analysis of financial …