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 paper surveys the field of asset pricing. The emphasis is on the interplay between
theory and empirical work and on the trade‐off between risk and return. Modern research …

Some experts have called for easing penalties on early withdrawals from savings plans,
believing people will invest more if they know they can get their money if they need it. But …

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 provide an empirical evaluation of the forward-looking long-run risks (LRR) model and
highlight model differences with the backward-looking habit based asset pricing model. We …

We document that business cycles of US Census regions are substantially more
synchronized than those of European countries. Data from regions within European …

The long-run risks model of asset prices explains stock price variation as a response to
persistent fluctuations in the mean and volatility of aggregate consumption growth, by a …

In this paper we reconcile two opposing views about the elasticity of intertemporal
substitution (EIS). Empirical studies using aggregate consumption data typically find the EIS …

Aggregate stock prices, relative to virtually any indicator of fundamental value, soared to
unprecedented levels in the 1990s. Even today, after the market declines since 2000, they …

Changes in the age composition of US households over the next several decades could
affect energy use and carbon dioxide (CO2) emissions, the most important greenhouse gas …