Luxury Goods and the Equity Premium

This paper evaluates the equity premium using novel data on the consumption of luxury goods. Specifying household utility as a nonhomothetic function of the consumption of both a luxury good and a basic good, we derive pricing equations and evaluate the risk of holding equity. Household survey and national accounts consumption data overstate the risk aversion necessary to match the observed equity premium because they mostly reflect basic consumption. The risk aversion implied by equity returns and the consumption of luxury goods is more than an order of magnitude less than that implied by national accounts data. For the very rich, the equity premium is much less of a puzzle.

Why Do Household Portfolio Shares Rise in Wealth?

We develop a life-cycle consumption and portfolio choice model in which households have nonhomothetic utility over two types of goods, basic and luxury. We calibrate the model to match the cross-sectional and life-cycle variation in the basic expenditure share in the Consumer Expenditure Survey. The model explains the degree to which the portfolio share in risky assets rises in wealth in the cross-section of households in the Survey of Consumer Finances. For a given household, the portfolio share can fall in response to an increase in wealth, even though the model implies decreasing relative risk aversion.

Luxury Goods and the Equity Premium

This paper evaluates the equity premium using novel data on the consumption of luxury goods. Specifying utility as a nonhomothetic function of both luxury and basic consumption goods, we derive pricing equations and evaluate the risk of holding equity. Household survey and national accounts data mostly reflect basic consumption, and therefore overstate the risk aversion necessary to match the observed equity premium. The risk aversion implied by the consumption of luxury goods is more than an order of magnitude less than that implied by national accounts data. For the very rich, the equity premium is much less of a puzzle

Technical Indicators of Cardio-pulmonary Resuscitation (Cpr) with Traveling TIME 20, 40 and 60 Km/h

Introduction: Ambulances had special rule of velocity. Ambulances could accelerate over 80 km/h and could break through traffic light. During transport the patient might be got cardiac arrest. Almost all of the pre hospital nurses had reported that doing CPR during transport was difficult. The objective of this study was to analyze the effect of traveling time 20 km/h, 40 km/h and 60 km/h on technical indicators of CPR. Method: Design used in this study was pre-experiment. The population were nurses in ambulances 118 of Dr. Soetomo hospital Surabaya. A total of 14 respondents were taken as samples by purposive sampling. The independent variable was effectiveness of traveling time, while the dependent variable were technical indicators of CPR: Tidal Volume (TV), landmark hand position, deep of chest compression and chest compression rhythm in manekin. Data were measured by observation sheet and then analyzed using Chi-square test with level of significance α ≤ 0.05. Result: The result showed that travelling time 20 km/h and 40 km/h had a significant effect on technical indicators of CPR, but not at 60 km/h. Discussion: It could be concluded, the faster the travelling time, the more difficult to perform CPR. Further study should involve the travelling time and the accuracy of CPR technical indicators to treat and safe the patients, either in traumatic or non traumatic case