| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5089396 | Journal of Banking & Finance | 2013 | 7 Pages |
Abstract
⺠We incorporate habit formation preferences into an overlapping-generations economy. ⺠The middle-aged agents' savings decision has a substantial impact on equity premium. ⺠The higher incentive to save causes a lower bond yield and a higher equity return. ⺠Borrowing constraint amplifies the effect of habit formation on equity premium.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sei-Wan Kim, Joshua Krausz, Kiseok Nam,