Asset pricing models are formulated as economic equilibrium models
the verdict
SUPPORTED
the evidence backs this
confidence 75/100
Asset pricing models are frequently formulated using economic equilibrium frameworks, where asset prices and risk premia are derived from market-clearing conditions and the stochastic discount factor.
Evidence for · 2
General Equilibrium Liquidity-Adjusted Valuation (GELAV): A Structural Asset Pricing Framework
2026 · cited by 0
Paper 8 develops a structural asset pricing framework grounded in general equilibrium, linking the pricing kernel and liquidity risk directly to economic equilibrium preferences.
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More for · 1
Stochastic Taxation and Asset Pricing in Dynamic General Equilibrium
2002 · cited by 0
Paper 9 examines asset pricing within a dynamic general equilibrium model, showing how market-clearing price adjustments affect bond and equity valuations under stochastic taxation.