... include Gilboa and Schmeidler (1989), Epstein and Wang (1994), Anderson, Hansen, and Sargent (2000), Chen and Epstein (2002), Hansen and Sargent (2001), Epstein and Miao (2003), Routledge and Zin (2002), ... Liu and Pan (2003), Liu, Longstaff, and Pan (2003) and Das and Uppal (2001) Dufresne and Hugonnier (2001) study the impact of event risk on pricing and hedging of contingent claims 132 An Equilibrium ... paper, University of North Carolina, University of Chicago, and Stanford University Bansal, R., A R Gallant, and G Tauchen, 2002, ‘‘Rational Pessimism, Rational Exuberance, and Markets for Macro Risks,’’...