This chapter reviews the behavior of financial asset prices in relation to consumption. The
chapter lists some important stylized facts that characterize US data, and relates them to …

This chapter reviews the behavior of financial asset prices in relation to consumption. The
chapter lists some important stylized facts that characterize US data, and relates them to …

We present a consumption-based model that explains a wide variety of dynamic asset
pricing phenomena, including the procyclical variation of stock prices, the long-horizon …

We show that macroeconomic movements have strong effects on the happiness of nations.
First, we find that there are clear microeconomic patterns in the psychological well-being …

Macroeconomics was born as a distinct field in the 1940's, as a part of the intellectual
response to the Great Depression. The term then referred to the body of knowledge and …

A representative-consumer model with Epstein-Zin-Weil preferences and iid shocks,
including rare disasters, accords with observed equity premia and risk-free rates if the …

OVER THE LAST one hundred years, the average real return to stocks in the United States
has been about six percent per year higher than that on Treasury bills. At the same time, the …

We analyze how relative wage movements among birth cohorts and education groups
affected the distribution of household consumption and economic welfare. Our empirical …

Abstract We analyse a Bewley-Huggett-Aiyagari incomplete-markets model with labour-
market frictions. Consumers are subject to idiosyncratic employment shocks against which …

This paper analyses the effects of business cycle volatility on measures of subjective well‐
being, including self‐reported happiness and life satisfaction. I find robust evidence that high …