Can Rare Events Explain the Equity Premium Puzzle

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How researchers see this paper

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Disasters Risk and Business Cycles (2012, unknown): “Robert Barro (WSJ, March 4, 2009): ... there is ample reason to worry about slipping into a depression.”
Nonparametric stochastic discount factor decomposition (2014, background): “For example, Barro (2006) provides a calibration of a rare disasters model with independent consumption growth that appears to resolve these issues, but Julliard and Ghosh (2012) and Backus et al.”
Asset Pricing with Countercyclical Household Consumption Risk (2017, unknown): “Julliard and Ghosh (2012) empirically rejected the rare events explanation of the equity premium puzzle, showing that in order to explain the puzzle with power utility preferences of the representative agent and plausible RRA once the multi-year nature of disasters is correctly taken into account,…”
Borrowers under water! Rare disasters, regional banks, and recovery lending (2020, background): “The prominent role of disasters in explaining the equity premium is not uncontested though (Julliard and Ghosh, 2012).”
Carry Trades and Risk (2011, background): “Julliard and Ghosh (2010) suggest that explaining the cross-section of returns is di¢ cult in a model with rare consumption disasters and constant relative risk aversion preferences because rare disasters tend to reduce the cross-sectional dispersion of the model-implied consumption betas.”