This dissertation analyzes economic implications of limited attention. The dissertation consists of an introduction (Chapter 1) and four independent articles (Chapter 2-5). The different articles, from the field of microeconomic theory, focus on different aspects of limited attention. The...

What is a bond? -- What determines prices and interest rates on bonds? -- How do bond markets work? -- How do stocks and stock markets work? -- What is the federal reserve and how does monetary policy work? -- What causes stock market bubbles and government debt crises? -- How should you invest...

This thesis concerns the empirical relation between risk and return in equities. It studies why the expected return on stocks as a whole varies over time and why there are predictable cross-sectional di↵erences in the return on individual stocks. The thesis consists of three chapters which can...