IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-031-86189-5_5.html
   My bibliography  Save this book chapter

The Consumption CAPM

In: Essentials of Financial Economics

Author

Listed:
  • Michael Donadelli

    (University of Brescia)

  • Michele Costola

    (Ca’ Foscari University of Venice)

  • Ivan Gufler

    (Luiss Guido Carli)

Abstract

Traditional static asset pricing models, such as the CAPM, often fall short in capturing the dynamic nature of real-world investment decisions. These models typically rely on one-period frameworks, neglecting the iterative process of portfolio adjustment in response to evolving market conditions and new information. To address this limitation, a more dynamic approach is necessary to accurately model investor behavior and portfolio optimization strategies. To address this issue, it is essential to develop a multiperiod model that yields a new asset pricing formula. One such model is the Consumption-based CAPM (CCAPM), an intertemporal general equilibrium asset pricing model where investors make optimal decisions recursively.

Suggested Citation

  • Michael Donadelli & Michele Costola & Ivan Gufler, 2025. "The Consumption CAPM," Springer Texts in Business and Economics, in: Essentials of Financial Economics, chapter 5, pages 121-157, Springer.
    • Handle: RePEc:spr:sptchp:978-3-031-86189-5_5
    DOI: 10.1007/978-3-031-86189-5_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-031-86189-5_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.