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Essay's paper info
Topic: Book Reports
Number of pages / Number of words: 29 / 8087
Essay's paper body

We begin our

study assuming that investors are risk-neutral, which implies that the URP does not include risk

5

ECB

Working Paper Series No. 529

September 2005

premia. Next, we relax the risk-neutrality assumption and we enrich the URP by employing

additional financial variables, which are related to the business cycle...


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529

September 2005

premia. Next, we relax the risk-neutrality assumption and we enrich the URP by employing

additional financial variables, which are related to the business cycle. We use differentials in

corporate earnings' growth rates, short-term interest rate changes, and annual inflation rates, as well

as net equity flows...


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