TY  - JOUR
AU  - Bansal,Ravi
TI  - Long-Run Risks and Financial Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13196
PY  - 2007
Y2  - June 2007
UR  - http://www.nber.org/papers/w13196
L1  - http://www.nber.org/papers/w13196.pdf
N1  - Author contact info:
Ravi Bansal
Fuqua School of Business
Duke University
1 Towerview Drive
Durham, NC 27708
Tel: 919/660-7758
Fax: 919/660-8038
E-Mail: ravi.bansal@duke.edu
AB  - The recently developed long-run risks asset pricing model shows that concerns about long-run expected growth and time-varying uncertainty (i.e., volatility) about future economic prospects drive asset prices. These two channels of economic risks can account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross-sectional differences in asset returns. Hence, the long-run risks model provides a coherent and systematic framework for analyzing financial markets.
ER  -