Keeping up with the Joneses: consumption externalities, portfolio choice, and asset prices.: An article from: Journal of Money, Credit & Banking
Book Details
Author(s)Jordi Gali
PublisherOhio State University Press
ISBN / ASINB0008YZ2GA
ISBN-13978B0008YZ2G6
MarketplaceIndia 🇮🇳
Description
This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on February 1, 1994. The length of the article is 3382 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: We study the implications for optimal portfolio decisions and equilibrium asset prices of the hypotheses that agents care about other agents' consumption level (in addition to their own). That hypothesis is introduced in two settings: (i) a one-period CAPM model, and (ii) a multiperiod asset pricing model. The presence of externalities is shown to affect the optimal risky share, as well as the size of adjustments in the latter in response to exogenous changes in the risk-adjusted equity premium. In equilibrium, the equity premium is also affected by the sign and the intensity of the externalities. (Printed by permission of the publisher.)
Citation Details
Title: Keeping up with the Joneses: consumption externalities, portfolio choice, and asset prices.
Author: Jordi Gali
Publication:Journal of Money, Credit & Banking (Refereed)
Date: February 1, 1994
Publisher: Ohio State University Press
Volume: v26 Issue: n1 Page: p1(8)
Distributed by Thomson Gale
From the supplier: We study the implications for optimal portfolio decisions and equilibrium asset prices of the hypotheses that agents care about other agents' consumption level (in addition to their own). That hypothesis is introduced in two settings: (i) a one-period CAPM model, and (ii) a multiperiod asset pricing model. The presence of externalities is shown to affect the optimal risky share, as well as the size of adjustments in the latter in response to exogenous changes in the risk-adjusted equity premium. In equilibrium, the equity premium is also affected by the sign and the intensity of the externalities. (Printed by permission of the publisher.)
Citation Details
Title: Keeping up with the Joneses: consumption externalities, portfolio choice, and asset prices.
Author: Jordi Gali
Publication:Journal of Money, Credit & Banking (Refereed)
Date: February 1, 1994
Publisher: Ohio State University Press
Volume: v26 Issue: n1 Page: p1(8)
Distributed by Thomson Gale
