Economic Activity of Firms and Asset Prices

In this review we survey the recent research on the fundamental determinants of stock returns. These studies explore how firms' systematic risk and their investment and production decisions are jointly determined in equilibrium. Models with production provide insights into several types of empirical patterns, including (a) the correlations between firms' economic characteristics and their risk premia, (b) the comovement of stock returns among firms with similar characteristics, and (c) the joint dynamics of asset returns and macroeconomic quantities. Moreover, by explicitly relating firms' stock returns and cash flows to fundamental shocks, models with production connect the analysis of financial markets with the research on the origins of macroeconomic fluctuations

Modeling Monetary Policy

We develop a macroeconomic framework where money issupplied against only few eligible securities in open marketoperations. The relationship between the policy rate,expected inflation and consumption growth is affected bymoney market conditions, i.e. the varying liquidity value ofeligible assets and the associated risk. This induces a liquiditypremium, which explains the observed systematic wedgebetween the policy rate and consumption Euler interest ratethat standard models equate. It further implies a dampenedresponse of consumption to policy rate shocks that is humpshapedwhen we account for realistic central bank transfersand the dynamics of bond holdings

Scaling slowly rotating asteroids with stellar occultations

Context. As evidenced by recent survey results, the majority of asteroids are slow rotators (spin periods longer than 12 h), but lack spin and shape models because of selection bias. This bias is skewing our overall understanding of the spins, shapes, and sizes of asteroids, as well as of their other properties. Also, diameter determinations for large (>60 km) and medium-sized asteroids (between 30 and 60 km) often vary by over 30% for multiple reasons. Aims. Our long-term project is focused on a few tens of slow rotators with periods of up to 60 h. We aim to obtain their full light curves and reconstruct their spins and shapes. We also precisely scale the models, typically with an accuracy of a few percent. Methods. We used wide sets of dense light curves for spin and shape reconstructions via light-curve inversion. Precisely scaling them with thermal data was not possible here because of poor infrared datasets: large bodies tend to saturate in WISE mission detectors. Therefore, we recently also launched a special campaign among stellar occultation observers, both in order to scale these models and to verify the shape solutions, often allowing us to break the mirror pole ambiguity. Results. The presented scheme resulted in shape models for 16 slow rotators, most of them for the first time. Fitting them to chords from stellar occultation timings resolved previous inconsistencies in size determinations. For around half of the targets, this fitting also allowed us to identify a clearly preferred pole solution from the pair of two mirror pole solutions, thus removing the ambiguity inherent to light-curve inversion. We also address the influence of the uncertainty of the shape models on the derived diameters. Conclusions. Overall, our project has already provided reliable models for around 50 slow rotators. Such well-determined and scaled asteroid shapes will, for example, constitute a solid basis for precise density determinations when coupled with mass information. Spin and shape models in general continue to fill the gaps caused by various biases