We develop a framework to theoretically and empirically analyze the fluctuations of the ag- gregate stock market. Households allocate capital to institutions, which are fairly constrained, for example operating with a mandate to maintain a fixed equity share or with moderate scope for variation....

We develop a framework to theoretically and empirically analyze the fluctuations of the aggregate stock market. Households allocate capital to institutions, which are fairly constrained, for example operating with a mandate to maintain a fixed equity share or with moderate scope for variation in...

A large literature is concerned with measuring economic uncertainty and quantifying its impact on real decisions, such as investment, hiring, and R&D, and ultimately economic growth. The COVID-19 pandemic underscores the importance of timely measures of uncertainty and expected growth across...