Arbeitspapier
Asset pricing, habit memory, and the labor market
This article studies the asset pricing and the business cycle implications of habit formation in a production economy with capital adjustment costs and endogenous labor supply. A specification of internal habit in the mix of consumption and leisure which minimizes the wealth effect on labor supply is introduced into an otherwise standard real business cycle model. This mechanism enhances the model’s ability to explain asset pricing puzzles.
- Language
-
Englisch
- Bibliographic citation
-
Series: ECB Working Paper ; No. 1163
- Classification
-
Wirtschaft
Asset Pricing; Trading Volume; Bond Interest Rates
Business Fluctuations; Cycles
Time Allocation and Labor Supply
- Subject
-
adjustment costs
equity premium puzzle
Labor supply
Equity-Premium-Puzzle
Arbeitsmarkt
CAPM
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Jaccard, Ivan
- Event
-
Veröffentlichung
- (who)
-
European Central Bank (ECB)
- (where)
-
Frankfurt a. M.
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Jaccard, Ivan
- European Central Bank (ECB)
Time of origin
- 2010