We estimate the reaction of the hotel and restaurant industries to the monetary policy actions of the Federal Reserve in the US. We find that the portfolios of hotel industry stocks react strongly to the unexpected changes in the Federal Funds Target Rate. Specifically, for a hypothetical...

This paper presents an equilibrium model in a pure exchange economy when investors have three possible sources of heterogeneity. Investors may differ in their beliefs, in their level of risk aversion and in their time preference rate. We study the impact of investors heterogeneity on the...