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As pointed out by many studies, [Boldrin, Christiano and Fisher (2001), Danthine and Donaldson (2002), Uhlig (2006), Uhlig(2007), Guvenen (2009)] the endogeneity of labor market movements is a major obstacle when it comes to explaining the joint behavior of financial market and macroeconomic data. In this article, we propose to overcome this difficulty by considering an economy with a representative agent whose habits are formed over a mix of consumption and leisure.
“Properly selected investments in leveraged buyouts and venture capital generate high returns relative to other equity alternatives, enhancing overall portfolio results.” This is expressed by one of the most successful portfolio managers in recent years, Swensen (2009: 220).
The process of find the proper investments and understanding the private equity asset class has proved to be difficult though. It is this complexity that has motivated me to study it in more detail throughout my thesis.
For the first time since the early 1990s, Australia faces an economic future that has all the hallmarks of a slowdown, if not a recession. The year 2008 has seen global economic conditions experience a shift of such significance that all members of the G7 group of advanced economies (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) have experienced at least one quarter of negative growth (Australian Treasury, 2008). Japan and the United States have now officially moved into technical recession.