Long Run Risk Model and Equity Premium Puzzle in Thailand

joint with Sartja Duangchaiyoosook


This paper shows that the long-run risk model of Bansal and Yaron (2004) can potentially solve the equity premium and risk-free rate puzzles in Thailand. In particular, the calibrated values of the risk aversion and the elasticity of intertemporal substitution are empirically plausible. Risk decomposition results indicate that long-run risk is the most important risk component relevant to asset prices; that is, asset prices in Thai financial markets are most sensitive to small changes in news regarding long-term expected growth rates. Volatility risk also has an impact on asset prices but its impact is just about a quarter of the impact of the long-run risk.

This version is as of 3 April 2021

Data and Matlab Codes

Short-term Impact of an Early Childhood Curriculum Intervention in Rural Thailand

joint with Wisuwat Chujan


This paper evaluates the short-term impact of an early childhood curriculum intervention on child development. Teachers in rural childcare centers in northeastern Thailand were encouraged to employ the new curriculum, which is based primarily on the HighScope approach. We overcome the endogenous decision of teachers to adopt the new curriculum by using the randomization of additional teachers as an instrument. We find that the new curriculum significantly improved child development in several dimensions, including gross motor, fine motor, expressive language, and personal and social skills, with an effect size of roughly 0.54 standard deviations for the benchmark case. The results are robust with regards to various estimation methods, child development measures, and sample selections. We also find that the impact of the new curriculum is quite homogeneous across sub-groups except in some dimensions, notably parental absence, main caregiver's working memory, mother's age and teenage pregnancy status of mother, and teacher's job status.

This version is as of 12 May 2020

Online Appendix with more details


A Market-Based Solution for Fire Sales and Other Pecuniary Externalities

Weerachart T. Kilenthong and Robert M. Townsend

Journal of Political Economy

Published version with Online Appendix for more details

Working paper version as of 12 August 2020

Do Parental Absence and Children’s Gender Affect Early Childhood Investment? Evidence from Rural Thailand

Weerachart T. Kilenthong and NGOC TÚ T. ĐINH

The Singapore Economic Review

Forthcoming. link , Online Appendix

Entrepreneurship and Family Businesses in Thailand

Weerachart T. Kilenthong and Kittipong Rueanthip,

Asian-Pacific Economic Literature,

Vol. 32, NO.1, 2018; pp.77-93. link

Observability and Endogenous Organizations

Weerachart T. Kilenthong and Gabriel A. Madeira,

Economic Theory,

Vol. 63, NO.3, 2017; pp.587–619. link


Tee Kilenthong is an Associate Professor in the Faculty of Economics at the University of the Thai Chamber of Commerce (UTCC) and Director of Research Institute for Policy Evaluation and Design (RIPED). His research interests include growth and development, macroeconomics, contract theory, financial economics, labor and education economics.

His current research focuses on early childhood and human capital development. His important long-term research project is the RIECE Thailand, which aims to promote high quality early chilhood education, based on the HighScope approach, in Thailand, and to better understand how human capital has been formed since early childhood.

He received a Bachelor Degree in Engineering (First Class Honor with Gold Medal) from Chulalongkorn Univeristy and a Master Degree in Physics from the same university. He received a Ph.D. in Economics from the University of Chicago in 2006, where he studied under Professor Robert M. Townsend. He was working as an assistant professor in the Department of Economics at the University of California at Santa Barbara between 2006 and 2010.