Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174171 
Year of Publication: 
2016
Series/Report no.: 
IES Working Paper No. 04/2016
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
This short paper shows that a New Keynesian model with limited asset market participation can generate a high risk-premium on unlevered equity relative to short-term risk-free bonds and high variability of equity returns driven by monetary policy shocks with zero persistence.
Subjects: 
limited participation
monetary policy
DSGE
equity premium
JEL: 
E32
E44
G12
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.