This article explores how improvements in the understanding of socioeconomic characteristics and their interactions across small geographical areas could enable more efficient resource allocations to counteract the spread of a disease. Our empirical analysis focusses on COVID-19 infection rates...

In this paper, we evaluate specification and pricing error for the Consumption (C-) CAPM in the case where the model is optimally scaled by consumption-wealth ratio (CAY). Lettau and Ludvigson (2001b) show that the C-CAPM successfully explains a large portion (about 70%) of the cross-section of...

We construct unconditionally efficient asset allocation strategies that ex- ploit return predictability of international size and momentum portfolios. The strategies achieve comparable returns to these investment assets while exhibit- ing much lower volatility. They largely avoid major losses by...

We show that when returns are predictable, persistent predictors, known to bias time-series predictive regressions, also bias the estimation of the cross-sectional moments of asset return distribution, especially the variance-covariance matrix of returns. Our findings, further, suggest that the...