Description

This insightful collection examines the intersection between macroeconomics and finance. The key challenge in this area is to find the right measure of 'bad times' (the marginal value of wealth) to explain some assets' high average returns or low prices as compensation for those assets' tendency to pay off poorly in bad times.

The volume includes a carefully chosen selection of articles that survey the various approaches to this question - including the equity premium, consumption based models, general equilibrium models and labour income/idiosyncratic risk approaches. The editor also provides a comprehensive introduction which sets these papers in context and surveys the broader literature.

Financial Markets and the Real Economy

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Hardback by John H. Cochrane

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This insightful collection examines the intersection between macroeconomics and finance. The key challenge in this area is to find the... Read more

    Publisher: Edward Elgar Publishing Ltd
    Publication Date: 27/01/2006
    ISBN13: 9781843761921, 978-1843761921
    ISBN10: 1843761920

    Number of Pages: 720

    Non Fiction , Business, Finance & Law

    Description

    This insightful collection examines the intersection between macroeconomics and finance. The key challenge in this area is to find the right measure of 'bad times' (the marginal value of wealth) to explain some assets' high average returns or low prices as compensation for those assets' tendency to pay off poorly in bad times.

    The volume includes a carefully chosen selection of articles that survey the various approaches to this question - including the equity premium, consumption based models, general equilibrium models and labour income/idiosyncratic risk approaches. The editor also provides a comprehensive introduction which sets these papers in context and surveys the broader literature.

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