Pricing Assets in an Economy with Two Types of People

This paper constructs a general equilibrium model with two types of people where asset price fluctuations are caused by random shocks to the price level that reallocate consumption across generations. In this model, asset prices are volatile, and price-earnings ratios are persistent, even though the...

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Bibliographic details
Main Author: Farmer, Roger
Format: Paper
Language: English
Place of publication: National Bureau of Economic Research 01.05.2016
Data of publication: 20160501
Series: NBER Working Paper Series
Online Access: Fulltext
Database: NBER Working Papers
National Bureau of Economic Research Publications
NBER Technical Working Papers Archive
Database information Databases - DBIS