The Spirit of Capitalism and Stock-Market Prices.

Article, Preprint OPEN
Gurdip S. Bakshi; Zhiwu Chen;
  • Journal: American Economic Review, volume 86, issue 1 March, pages 133-57
  • Subject:
    • jel: jel:G1 | jel:G12 | jel:G10

In existing theory, wealth is no more valuable than its implied consumption rewards. In reality, investors acquire wealth not just for its implied consumption but for the resulting social status. Max M. Weber (1958) refers to this desire for wealth as the spirit of capi... View more
  • References (45)
    45 references, page 1 of 5

    Abel, Andrew B. "Asset Prices under Habit Formation and Catching Up with the Joneses." American Economic Review, March 1990, 80(1), pp. 38-42.

    Breeden,DouglassT. "An IntertemporalAsset Pricing Model with StochasticConsumption and Investment Opportunities." Journal of Financial Economics, September 1979, 7(3), pp. 265-96.

    Campbell,John Y. "IntertemporalAsset Pricing WithoutConsumptionData." American Economic Review, June 1993, 83(3), pp. 487-512.

    Campbell, John Y. and Cochrane, John H. "By Force of Habit: A ConsumptionBased Explanation of Aggregate Stock Market Behavior." Working Paper, Harvard University and University of Chicago, 1995.

    Cecchetti, Stephen G.; Lam, Pok-Sang and Mark, Nelson C. "Testing Volatility Restrictions on IntertemporalMarginal Rates of Substitution Implied by Euler Equations and Asset Returns." Journal of Finance, March 1994, 49(1), pp. 123- 52.

    Chen, Zhiwu. "Changing Tastes and Asset Pricing in Multiperiod Economies." Ph.D. Dissertation, Yale University, 1990.

    Chiu, Tzu-Kuan. "Wealth-Dependent Preferences and Asset Prices in General Equilibrium: Theoretical Implications." Working Paper, University of Pennsylvania, 1993.

    Christiano, Lawrence. "Modelling the Liquidity Effect of a Money Shock." Quarterly Review, Federal Reserve Bank of Minneapolis, Winter 1991, pp. 3-34.

    Cochrane, John H. and Hansen, Lars P. "Asset Pricing Explorationsfor Macroeconomics," in NBER Macroeconomics Annual. Cambridge, MA: MIT Press, 1992, pp. 115-65.

    Cole, Harold L.; Mailath, George J. and Postlewaite, Andrew. "Social Norms, Saving Behavior and Growth." Journal of Political Economy, December 1992, 100(6), pp. 1092-125.

  • Metrics
Share - Bookmark