An exploration of asset returns in a production economy with relative habits
This paper explores asset returns in a production economy with habit forming households. I show that a model with capital adjustment costs and relative habits is consistent with salient financial facts, such as the equity premium, the market price of risk, and the riskfree interest rate. These predi...
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| Format: | workingPaper |
| Language: | eng |
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2015
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| Online Access: | http://hdl.handle.net/10400.3/3301 |
| Country: | Portugal |
| Oai: | oai:repositorio.uac.pt:10400.3/3301 |