This paper analyzes how the combination of borrowing constraints and idiosyncratic risk affects the equity premium in … idiosyncratic risk increases the equity premium by 70 percent, which means that the mechanism described in Constantinides, Donaldson … the zero-borrowing constraint is a lot weaker. More surprisingly, when I introduce idiosyncratic labor income risk in an …

This dissertation consists of three essays on high frequency data, volatility, and disaster risk in macroeconomic …. Chapter III investigates the distinct features and economic effects of stochastic volatility and rare disaster risk in the … Business Cycle model. By introducing disaster risk instead of stochastic volatility, I address two puzzles related to …