%0 Journal Article %1 Salyer:EL:2007 %A Salyer, Kevin D. %D 2007 %J Economics Letters %K disaster equity-premium %N 1 %P 64-70 %R http://dx.doi.org/10.1016/j.econlet.2006.08.003 %T Macroeconomic Priorities and Crash States %U http://www.sciencedirect.com/science/article/pii/S016517650600259X %V 94 %X This paper reproduces Lucas's analysis of the costs of business cycles in an economy with a low probability, crash state in consumption growth. It is shown that the presence of a crash state dramatically increases the costs of consumption volatility.

@article{Salyer:EL:2007, abstract = {This paper reproduces Lucas's analysis of the costs of business cycles in an economy with a low probability, crash state in consumption growth. It is shown that the presence of a crash state dramatically increases the costs of consumption volatility. }, added-at = {2014-10-15T00:17:04.000+0200}, author = {Salyer, Kevin D.}, biburl = {https://www.bibsonomy.org/bibtex/286d160d40c08b9144a5f3313dd91f721/fcqms}, description = {Macroeconomic priorities and crash states}, doi = {http://dx.doi.org/10.1016/j.econlet.2006.08.003}, interhash = {2ed01a8a116c47641f5006e75ffd7a90}, intrahash = {86d160d40c08b9144a5f3313dd91f721}, issn = {0165-1765}, journal = {Economics Letters }, keywords = {disaster equity-premium}, number = 1, pages = {64-70}, timestamp = {2014-10-15T00:17:04.000+0200}, title = {Macroeconomic Priorities and Crash States }, url = {http://www.sciencedirect.com/science/article/pii/S016517650600259X}, volume = 94, year = 2007 }