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Demand System Asset Pricing (DSAP) seeks to jointly understand asset prices, macro variables, characteristics, portfolio holdings and flows. In this post, I summarize frequently asked questions and clarify misconceptions associated with recent work in this area. This post is continuously updated.


General Comments

Why now?

Comparison to the “SDF Approach”

Demand elasticities in standard models

Residual supply

Estimation in levels vs. flows

Role of Market Clearing

Demand elasticity is not a structural parameter

From Static to Dynamic

Theory


Data FAQ

Form 13F