Consumption Euler Equation - Publications - Faculty & Research

August 2020
Article

Macroeconomic Drivers of Bond and Equity Risks

By: John Y. Campbell, Carolin E. Pflueger and Luis M. Viceira

Our new model of consumption-based habit generates time-varying risk premia on bonds and stocks from loglinear, homoskedastic macroeconomic dynamics. Consumers' first-order condition for the real risk-free bond generates an exactly loglinear consumption Euler equation,... View Details

Keywords: Consumption-based Habit Formation; Consumption Euler Equation; Time-varying Risk Premia; Inflation Dynamics; Bond-stock Correlation; Risk and Uncertainty; Bonds; Macroeconomics

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20 Feb 2017
Research & Ideas

Having No Life is the New Aspirational Lifestyle

an aspirational lifestyle. “The new conspicuous consumption is about saying, I am the scarce resource, and therefore I am valuable” The finding suggests a new way for marketers to sell their products and services to consumers by... View Details

Keywords: by Michael Blanding

09 Mar 2022
Research & Ideas

War in Ukraine: Soaring Gas Prices and the Return of Stagflation?

but the fact of their existence is inherently geopolitical because it ties countries together in very intimate ways and changes patterns of consumption and dependence. Forman: What’s the impact for companies that have had to get out of... View Details

Keywords: by Avery Forman; Energy

12 Nov 2021
News

Alumni Business Leaders on Confronting the Climate Change Challenge

important part of the equation to ensure systems wide decarbonization. My time at HBS laid the foundation that has helped me navigate uncertainty and see opportunity where there are challenges. We are at a critical juncture, where... View Details

11 Sep 2018
First Look

New Research and Ideas, September 11, 2018

consumption Euler equation, commonly assumed in New Keynesian models. Estimating the model separately for 1979–2001 and 2001–2011 explains why the exposure of U.S. Treasury bonds to the stock market changed... View Details

Keywords: Dina Gerdeman

17 Mar 2015
Research & Ideas

Where Did My Shopping Mall Go?

going to make the food space more vulnerable in the next five years. There is going to be enormous change, both because of the way people eat and because new models are starting to come into the equation that will erode the... View Details

Keywords: by Sean Silverthorne; Retail

20 Jul 2010
First Look

First Look: July 20

rights on firms' external finance constraints via generalized method of moments (GMM) estimation of an augmented investment Euler equation developed by Whited and Wu (2006). Using a large sample of U.S.... View Details

Keywords: Martha Lagace

18 Sep 2018
First Look

New Research and Ideas, September 18, 2018

theoretical prediction using a novel methodology based on the classic gravity equation in economics and measures of knowledge distance. Using a custom dataset of patents filed by all global subsidiaries of the top 25 patenting U.S.... View Details