Macroeconomic Fluctuations and Equilibrium Discount Factors /

The estimation of discount factors is a central issue in empirical finance, particularly in the literature on excess volatility. In particular, it is difficult to find empirical discount factors that are volatile enough to account for fluctuations in asset prices. This paper constructs discount fact...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Kramer, Charles
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1996.
سلاسل:IMF Working Papers; Working Paper ; No. 1996/118
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:The estimation of discount factors is a central issue in empirical finance, particularly in the literature on excess volatility. In particular, it is difficult to find empirical discount factors that are volatile enough to account for fluctuations in asset prices. This paper constructs discount factors from some macroeconomic time series commonly used in empirical models of asset prices. Data for the U.S. stock market imply some evidence that discount factors relate to macroeconomic conditions, but comparison of the estimated discount factors to Hansen-Jagannathan (1991) bounds shows that the candidate discount factors cannot account for the volatility in asset returns.
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وصف مادي:1 online resource (24 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students