5. Use the high and low growth states and the transition matrix given (102) in section 4.5...
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5. Use the high and low growth states and the transition matrix given (102)⇒ in section 4.5 to solve for the price-dividend ratios for equities. What does the Lucas model have to say about the volatility of stock prices? How does the behavior of equity prices in the monetary economy differ from the behavior of equity prices in the barter economy?
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International Macroeconomics And Finance Theory And Econometric Methods
ISBN: 9780631222880
1st Edition
Authors: Nelson Mark
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