An empirical investigation of asset pricing with temporally dependent preference specifications.

Using a Simulated Method of Moments approach, I evaluate a representative consumer asset pricing model in which the consumer is assumed to have time nonseparable preferences of several forms. Examining the model's implications for several moments of asset returns, I find evidence for the local subst...

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Detalles Bibliográficos
Publicado en:Econometrica Vol. 63; pp. 681 - 718
Autor principal: Heaton, John
Formato: Artículo
Publicado: Wiley-Blackwell May 1995
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May 1995
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      pub: Wiley-Blackwell
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        atl: An empirical investigation of asset pricing with temporally dependent preference specifications.
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        au: Heaton, John
      su:
        Consumer preferences
        Mathematical models
        Assets (Accounting)
        Pricing
        Time & economic reactions
        Mathematical models of economics
        Substitution (Economics)
      sug:
        subj:
          Consumer preferences
          Mathematical models
          Assets (Accounting)
          Pricing
          Time & economic reactions
          Mathematical models of economics
          Substitution (Economics)
      keyword: Asset pricing theory
      ab: Using a Simulated Method of Moments approach, I evaluate a representative consumer asset pricing model in which the consumer is assumed to have time nonseparable preferences of several forms. Examining the model's implications for several moments of asset returns, I find evidence for the local substitution of consumption with habit formation occurring over longer periods of time. The interaction between these two effects is important. I also show that, when accounting for sampling error, a model with local substitution and long-run habit persistence is consistent with the Hansen and Jagannathan (1991) bounds. Reprinted by permission of the Econometric Society.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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