introducing a behavioral individual risk aversion and a learning ability influencing the process of expectations formation …. Results show that individual learning may play a role in stabilizing the aggregate market dynamics, whereas the risk aversion …

introducing a behavioral individual risk aversion and a learning ability influencing the process of expectations formation …. Results show that individual learning may play a role in stabilizing the aggregate market dynamics, whereas risk aversion can …

generalized LRR model is as tractable but more flexible due to its separation of ambiguity aversion from both risk aversion and … variance premium puzzle besides the puzzles of the equity premium, the risk-free rate, and the return predictability …. Specifically, the model matches reasonably well key asset-pricing moments with risk aversion under 5. Model calibration shows that …