This study is to assess the dynamics effects of business confidence and consumer confidence on stock market risk … of stock market risk premiums though a variance decomposition. The results show that the response of stock market risk … variance decomposition analysis, the variability of stock market risk premiums is 95% due to its own shock and the rest is due …

resulting from our ratio habit preference---explains the joint equity premium--risk-free rate puzzle with a risk aversion … various portfolios and it is the only consumption measure that passes the robust tests of the factor risk premium proposed by … Kleibergen and Zhan (2020). While our measure constructed from nondurables does better at pricing the equity premium and risk …

The basic inability of standard theoretical models to generate a sufficiently large and variable nominal bond risk …

Estimates of risk premium derived from classical financial theory have consistently shown deviations from the observed … consideration of behavioral factors.Therefore, the paper proposes an alternative methodology to estimate risk premium incorporating … a more accurate measure of risk premium that the one provided by classical financial approaches. It also offers an …