Product Variety and Asset Pricing

References

• Ait-Sahalia Y, Parker J, Yogo M (2004) Luxury goods and the equity premium. J. Finance 59(6):2959–3004.Crossref, Google Scholar
• Axarloglou K (2003) The cyclicality of new product introductions. J. Bus. 76(1):29–48.Crossref, Google Scholar
• Bilbiie FO, Ghironi F, Melitz MJ (2012) Endogenous entry, product variety, and business cycles. J. Political Econom. 120(2):304–345.Crossref, Google Scholar
• Broda C, Weinstein DE (2006) Globalization and the gains from variety. Quart. J. Econom. 121(2):541–585.Crossref, Google Scholar
• Campbell JY, Cochrane JH (1999) By force of habit: A consumption-based explanation of aggregate stock market behavior. J. Political Econom. 107(2):205–251.Crossref, Google Scholar
• Campbell JY, Shiller RJ (1988) The dividend-price ratio and expectations of future dividends and discount factors. Rev. Financial Stud. 1(3):195–228.Crossref, Google Scholar
• Cochrane J (2005) Asset Pricing Theory (Princeton University Press, Princeton, NJ).Google Scholar
• Comin D, Gertler M (2006) Medium-term business cycles. Amer. Econom. Rev. 96(3):523–551.Crossref, Google Scholar
• Corhay A, Kung H, Schmid L (2020) Competition, markups, and predictable returns. Rev. Financial Stud. 33(12):5906–5939.Crossref, Google Scholar
• DeSilver D (2024) Eggs, gasoline and car insurance: Where inflation has hit Americans hardest. Pew Research Center. Accessed May 25, 2025, https://www.pewresearch.org/short-reads/2024/08/07/eggs-gasoline-and-car-insurance-where-inflation-has-hit-americans-hardest/.Google Scholar
• Dixit AK, Stiglitz JE (1977) Monopolistic competition and optimum product diversity. Amer. Econom. Rev. 67(3):297–308.Google Scholar
• Duffie D (2001) Dynamic Asset Pricing Theory (Princeton University Press, Princeton, NJ).Google Scholar
• Epstein LG, Zin SE (1989) Substitution, risk aversion, and the temporal behavior of consumption and asset returns: A theoretical framework. Econometrica 57(4):937–969.Crossref, Google Scholar
• Epstein LG, Zin SE (1991) Substitution, risk aversion, and the temporal behavior of consumption and asset returns: An empirical analysis. J. Political Econom. 99(2):263–286.Crossref, Google Scholar
• Ghironi F, Melitz M (2007) Trade flow dynamics with heterogeneous firms. Amer. Econom. Rev. 97(2):356–361.Crossref, Google Scholar
• Hansen LP, Singleton KJ (1982) Generalized instrumental variables estimation of nonlinear rational expectations models. Econometrica 50(5):1269–1286.Crossref, Google Scholar
• Hansen LP, Singleton KJ (1983) Stochastic consumption, risk aversion, and the temporal behavior of asset returns. J. Political Econom. 91(2):249–265.Crossref, Google Scholar
• Hernandez DA, Santos MS (1996) Competitive equilibria for infinite-horizon economies with incomplete markets. J. Econom. Theory 71(1):102–130.Crossref, Google Scholar
• Jaimovich N, Floetotto M (2008) Firm dynamics, markup variations and the business cycle. J. Monetary Econom. 55(7):1238–1252.Crossref, Google Scholar
• J.P. Morgan (2024) April 2024 CPI report: Inflation is trending in the right direction. Accessed May 25, 2025, https://www.jpmorgan.com/insights/outlook/economic-outlook/cpi-report-april-2024.Google Scholar
• Lettau M, Ludvigson S (2001) Resurrecting the (C)CAPM: A cross-sectional test when risk premia are time-varying. J. Political Econom. 109(6):1238–1287.Crossref, Google Scholar
• Ljungqvist L, Sargent TJ (2018) Recursive Macroeconomic Theory (MIT Press, Cambridge, MA).Google Scholar
• Loualiche E (2026) Asset pricing with entry and imperfect competition. J. Finance. Forthcoming.Google Scholar
• Melitz MJ (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71(6):1695–1725.Crossref, Google Scholar
• Opp MM, Parlour CA, Walden J (2014) Markup cycles, dynamic misallocation, and amplification. J. Econom. Theory 154:126–161. Crossref, Google Scholar
• Pakos M (2004) Asset pricing with durable goods and non-homothetic preferences. MPRA Paper No. 26167, University Library of Munich, Munich, Germany.Google Scholar
• Piazzesi M, Schneider M, Tuzel S (2007) Housing, consumption and asset pricing. J. Financial Econom. 83(3):531–569.Crossref, Google Scholar
• Pleven L (2010) Commodities’ paths diverge. Wall Street Journal (December 12), https://www.wsj.com/articles/SB10001424052748704058704576015332264106072.Google Scholar
• Savov A (2011) Asset pricing with garbage. J. Finance 66(1):177–201.Crossref, Google Scholar
• Scanlon P (2019) New goods and asset prices. J. Financial Econom. 132(3):140–157.Crossref, Google Scholar
• Schmookler J (1966) Invention and Economic Growth (Harvard University Press, Cambridge, MA).Crossref, Google Scholar
• Schumpeter JA (1939) A Theoretical Historical and Statistical Analysis of the Capitalist Process (McGraw-Hill, New York).Google Scholar
• Shleifer A (1986) Implementation cycles. J. Political Econom. 94(6):1163–1190.Crossref, Google Scholar
• Van Binsbergen JH (2016) Good-specific habit formation and the cross-section of expected returns. J. Finance 71(4):1699–1732.Crossref, Google Scholar
• Yogo M (2006) A consumption-based explanation of expected stock returns. J. Finance 61(2):539–580.Crossref, Google Scholar
• Yorukoglu M (2000) Product vs. process innovations and economic fluctuations. Carnegie-Rochester Conf. Ser. Public Policy 52:137–163.Crossref, Google Scholar