Chapter 12

Advances in Consumption-Based Asset Pricing: Empirical Tests *

Sydney C. Ludvigson

Department of Economics, New York University and NBER, 19W. 4th Street, 6th Floor, New York, NY 10012, USA. Tel.: +1 (212) 998 8927,


The last 15 years has brought forth an explosion of research on consumption-based asset pricing as a leading contender for explaining aggregate stock market behavior. This research has propelled further interest in consumption-based asset pricing, as well as some debate. This chapter surveys the growing body of empirical work that evaluates today’s leading consumption-based asset pricing theories using formal estimation, hypothesis testing, and ...

Get Handbook of the Economics of Finance now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.