Asset pricing under information-processing constraints

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 107
Issue: 1
Pages: 26-29

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the implications of rational inattention (RI) for asset pricing in a LQ-PIH model. We find that RI increases the size of risk adjustment to asset prices and expected excess returns, which helps resolve extant asset pricing puzzles.

Technical Details

RePEc Handle
repec:eee:ecolet:v:107:y:2010:i:1:p:26-29
Journal Field
General
Author Count
2
Added to Database
2026-01-25