2,744 research outputs found

    TERM PREMIUM AND EQUITY PREMIUM IN ECONOMIES WITH HABIT FORMATION

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    In this paper we investigate the size of the risk premium and the term premium in an representative agent exchange model economy where households preferences are subject to habit formation. As a novel feature, we develop theoretical measures for risk premium and term premium that can be used even when the consumption growth process is serially autocorrelated. We find that habit formation increases risk aversion significantly but increases much more the aversion to variations of consumption across dates. This induces a substantial increase in the precautionary demand of short term assets and a significant fall in the precautionary demand of long term assets. As a result, the term premium increases substantially with habit formation. Next we calibrate our model economy and examine the quantitative predictions of our theoretical measures of equity premium, risk premium and term premium. In line with previous literature, we show that it is possible to find a reasonable calibration for which the equity premium is that observed in the data. However, we find that around 70 percent of the equity premium is just term premium. That is, a very large fraction of the increase in the equity premium is due to the asymmetric effect that habit formation has on the precautionary demand of an asset depending on its maturity.

    Characteristics of International High Performance Teams

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    Studies have shown there are differences between high performance domestic teams and international high performance teams. Today’s companies are looking to develop teams into international high performance teams. If we look at a successful domestic company with a blueprint for high performance teams, this company will find itself challenged in an increasingly international workforce. High performance teams are essential for organizations because they can drive companies’ success. This project presents characteristics of different types of teams (domestic and international) with the purpose to build and improve the performance of an international high performance team. This project was chosen because HR departments will need to understand the skills necessary to create high performance international teams and design HR practices and culture to be successful in the new global economy

    Topological invariants for semigroups of holomorphic self-maps of the unit disc

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    Let (φt)(\varphi_t), (ϕt)(\phi_t) be two one-parameter semigroups of holomorphic self-maps of the unit disc D⊂C\mathbb D\subset \mathbb C. Let f:D→Df:\mathbb D \to \mathbb D be a homeomorphism. We prove that, if f∘ϕt=φt∘ff \circ \phi_t=\varphi_t \circ f for all t≄0t\geq 0, then ff extends to a homeomorphism of Dˉ\bar{\mathbb D} outside exceptional maximal contact arcs (in particular, for elliptic semigroups, ff extends to a homeomorphism of Dˉ\bar{\mathbb D}). Using this result, we study topological invariants for one-parameter semigroups of holomorphic self-maps of the unit disc.Comment: 28 pages, final version, to appear in J. Math. Pures App
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