observable component (e.g., a parametric function of consumption) and a potentially unobservable one (e.g., habit level or the … consumption-based asset pricing models, gaining new insights about their empirical performance and finding empirical support for …

This paper explores the implications of consumption heterogeneity between domestic and foreign investors on the cross … financial markets may face consumption risk, which could result in risk premia being reflected in stock returns. To account for … consumption model under market incompleteness, which extends the one-country durable consumption model. The proposed model …