Over two decades ago, Mehra and Prescott (1985) challenged the finance profession with a
poser: the historical US equity premium is an order of magnitude greater than can be …

The social cost of carbon (SCC) is an important concept for understanding and
implementing climate change policies. This term represents the economic cost caused by an …

Traditional capital structure theory predicts that reducing banks' leverage reduces the risk
and cost of equity but does not change the weighted average cost of capital, and thus the …

To capture the risk-aversion intuition, the standard approach in economics has been to
utilize the model of expected utility, in which risk aversion derives from diminishing marginal …

Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

This article estimates the coefficient of relative risk aversion for 75 countries using data on
self-reports of personal well-being from the 2006 Gallup World Poll. The analysis suggests …

A major research initiative in finance focuses on the determinants of the cross-sectional and
time series properties of asset returns. With that objective in mind, asset pricing models have …

This survey examines the history and current practice in integrated assessment models
(IAMs) of the economics of climate change. It begins with a review of the emerging problem …

I review the state of empirical asset pricing devoted to understanding cross-sectional
differences in average rates of return. Both methodologies and empirical evidence are …

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