Gabaix X. Variable Rare Disasters: An Exactly Solved Framework for Ten Puzzles in Macro-Finance. Quarterly Journal of Economics. 2012;127 (2) :645-700.
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|Precis of Results on Linearity-Generating Processes||63 KB|
Ten puzzling features of the macro-finance data are natural outcomes of a model where investors have time-varying perceptions of the risk of economic disaster.