Term Structures and Cross-Sections of Asset Risk Premia

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Publicationdate

  • 09/10/2019

Publisher

  • Swiss Finance Institute Research Project

Category

  • Past

Abstract

The project has the goal of improving the understanding of the prices of individual financial assets across different markets, as a function of the level and the term structure of their risks or uncertainty. We proceed along two main directions. First, we develop new structural and reduced-form models for the description and explanation of large cross-sections of risk-uncertainty premia and/or their term structures. Second, we develop new econometric methods and empirical approaches for analyzing large panels of individual risk premia, while accounting for their term structure information, where available.