Rare-Disasters, the Spitit of Capitalism, Oversaving, and Asset Pricing

Tao Jin () and Heng-Fu Zou ()

No 470, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: Rare disasters become increasingly important for understanding asset pricing, and the spirit of capitalism has been successful in explaining various issues in economic growth, savings behavior, and asset pricing. However, pervious studies don't reveal the connection of these two ideas. This paper tries to fill the gap in the literature and demonstrates the similarities in consumption decision making and savings behavior implied by models of rare disasters and spirit of capitalism, and analyzes interesting implications of this connection in asset pricing.

Keywords: rare-disasters; spirit of capitalism; oversaving; asset pricing (search for similar items in EconPapers)
Pages: 11 pages
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://down.aefweb.net/WorkingPapers/w470.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:470

Access Statistics for this paper

More papers in CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().