TY  - JOUR
AU  - Campbell,John Y.
TI  - Consumption and the Stock Market: Interpreting International Experience
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5610
PY  - 1996
Y2  - June 1996
UR  - http://www.nber.org/papers/w5610
L1  - http://www.nber.org/papers/w5610.pdf
N1  - Author contact info:
John Y. Campbell
Morton L. and Carole S.
Olshan Professor of Economics
Department of Economics
Harvard University
Littauer Center 213
Cambridge, MA 02138
Tel: 617/496-6448
Fax: 617/495-7730
E-Mail: john_campbell@harvard.edu
AB  - This paper reviews the behavior of stock prices in relation to consumption. The paper lists some important stylized facts that characterize US data, and relates them to recent developments in equilibrium asset pricing theory.  Data from other countries are examined to see which features of the US experience apply more generally.  The paper argues that to make sense of stock market behavior one needs a model in which investors' risk aversion is both high and varying, such as the external habit-formation model of Campbell and Cochrane (1995).
ER  -