Federal ID: 91-6001537
ISSN: 0022-1090 (Print) | 1756-6916 (Online)
Predictability Puzzles
Bjorn Eraker ♦ Dynamic equilibrium models based on present value computation imply that returns are predictable but also generate particular short-term patterns of predictability in asset returns. I take advantage of this to construct a set of tests of Equilibrium…