Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 15, 2016 erstellt
Description:
This paper studies the long-run risk embedded in the news about future investment-specific technology (IST). The IST news shock, which reflects future technological improvements in the production of investment goods such as computers, machines, and equipment, causes persistent future consumption growth, explains a large share of business cycle fluctuations in macro aggregates, and affects stock returns through the channel of expected cash flow growth. Consistent with the long-run consumption risk hypothesis, we find that the IST news shock carries a significantly positive risk premium in the cross section of asset returns and drives firm cash flows over long horizons