How Much Would You Pay to Resolve Long-Run Risk?
NBER Working Paper No. 19541
---- Acknowledgments ----
We thank Robert Barro, Jarda Borovicka, John Campbell, Eddie Dekel, Faruk Gul, Wolfgang Pesendorfer, Ben Polak, Todd Sarver, Costis Skiadas, Jessica Wachter, Stan Zin, and the audiences at the AEA meetings in San Diego, Bank of Portugal, U. Montreal and Tel Aviv for useful comments. This paper was written in part while Epstein was visiting the Economics Research Department of the Bank of Portugal and Strzalecki was visiting the Institute for Advanced Studies at Hebrew University and then the Cowles Foundation at Yale University. We are grateful for their support and hospitality, and also for NSF grants SES-0917740 and SES-1216339 (Epstein) and SES-1123729 (Strzalecki). We thank David Rezza Baqaee for excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.