; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Asset Pricing Lessons for Modeling Business Cycles"; ; "batchuser@example.com"; "Fisher, Jonas D. M. (Jonas Daniel Maurice), 1965-", "Christiano, Lawrence J.", "Boldrin, Michele"; "Federal Reserve Bank of Minneapolis"; "We develop a model which accounts for the observed equity premium and average risk-free rate, without implying counterfactually high risk aversion. The model also does well in accounting for business-cycle phenomena. With respect to the conventional measures of business-cycle volatility and comovement with output, the model does roughly as well as the standard business-cycle model. On two other dimensions, the model’s business-cycle implications are actually improved. Its enhanced internal propagation allows it to account for the fact that there is positive persistence in output growth, and the model also provides a resolution to the “excess sensitivity puzzle” for consumption and income. Two key features of the model are habit persistence preferences and a multisector technology with limited intersectoral mobility of factors of production. "^^; "1995-11"; "2019-07-30T15:54:26.699884813+00:00"^^; "https://doi.org/10.21034/wp.560"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2019-11-01T16:14:43.988746988+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "241", "92", "141"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "560"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; ; "Publication" . ; .