Financial Markets and the Real Economy
John Cochrane ()
Foundations and Trends(R) in Finance, 2005, vol. 1, issue 1, 1-101
The author surveys work on the intersection between macroeconomics and finance. The challenge is to find the right measure of "bad times," rises in the marginal value of wealth, so that we can understand high average returns or low prices as compensation for assets' tendency to pay off poorly in "bad times." The author surveys the literature, covering the time-series and cross-sectional facts, the equity premium, consumption-based models, general equilibrium models, and labor income/idiosyncratic risk approaches.
References: Add references at CitEc
Citations: View citations in EconPapers (51) Track citations by RSS feed
Downloads: (external link)
Working Paper: Financial Markets and the Real Economy (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:now:fntfin:0500000001
Access Statistics for this article
More articles in Foundations and Trends(R) in Finance from now publishers
Bibliographic data for series maintained by Alet Heezemans ().