This short paper provides an introduction to the historical and theoretical aspects of macroprudential regulation in order to shed insight on effective macroprudentional policies. The section on macroprudential policies attempts to use this insight in the discussion of the state of play in...

We develop and estimate a consumption-based asset pricing model that assumes recursive utility using historical US financial data, allowing for regime changes, priced regime risk, and intrinsic bubbles. We also estimate several restricted versions which include only a subset of these features....