We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing...

John Quiggin is an Australian economist and professor at the University of Queensland. He has also held academic positions at the Australian National University and James Cook University. Best known for his work on utility theory, Quiggin is among the top 500 economists in the world according to...

In this Supplement we provide foundations for the asset structures used in the main part of the paper, as well as in Appendix A. We use results by Choquet (1966), Kendall (1962) and Polyrakis (1999) to demonstrate how these asset structures can be generated from a general set of assets available...

Henderson and Quiggin offer an analysis of labour movement attitudes towards Basic Income, with a focus on the type of Basic Income proposals that might win trade union support in the future. The chapter begins by describing the lack of trade union support for Basic Income. The authors argue...