His work on the Long Run Risk Model provided new insights on the role of long-run growth and uncertainty as key drivers of asset prices.
[3][4] Among other awards, in 2019, his paper, Risks for the long run: A potential resolution of asset pricing puzzles (with Amir Yaron) won the Stephen A. Ross Prize in Financial Economics from Foundation for Advancement of Research in Financial Economics (FARFE).
[5] His related long-run risks research papers with Robert Dittmar and Christian Lundblad[6] and with Dana Kiku[7] established that cash-flow exposures with respect to long-term growth account for a large fraction of the long-run risk-premia on assets.
With Ivan Shaliastovich, his paper A Long-Run Risks Explanation of Predictability Puzzles in Bond and Currency Markets connects the long-run growth risks to inflation dynamics to explain the term structure of bond yields and exchange rates.
[9] A Monetary Explanation of the Equity Premium, Term Premium, and the Risk-Free Rate Puzzles co-authored with John Coleman provides a model of liquidity (moneyness of assets), convenience yields, and the term structure of interest rates.