An Intertemporal General Equilibrium Model of Asset Prices with Labor Input

摘要

This paper develops the CIR model. In this model, labor is introduced in the production functionand leisure in tke direct utility function. We examine how the trade-of f between labor and leisure would affect asset prices and derive a familiar principal partial differential equation which asset prices must satisfy.Tke solution of this equation gives tke equillbrlum prlce of any asset in terms of the underlying real variab1esln ecinimy.