Abstract
How non-linear are (log) price-dividend ratios in the fundamental\r\nstate variables? The accuracy log-linear approximations lies\r\nat the heart of much contemporary asset pricing. We analytic-\r\nally solve a parsimonious partial-equilibrium valuation model and\r\nuncover preliminary evidence suggesting that some caution be in\r\norder only if the fundamentals are extremely persistent.
| Lingua originale | Inglese |
|---|---|
| Editore | Vita e Pensiero |
| Pagine | 1-37 |
| Numero di pagine | 37 |
| ISBN (stampa) | 978-88-343-2294-9 |
| Stato di pubblicazione | Pubblicato - 2012 |
Keywords
- Stock pricing
- non-linearity
- persistence
- risk premia