Lansing, Kevin J. (contributor) - 2004 - [Elektronische Ressource]
Abstract
This paper examines an agent’s choice of forecast method within a standard asset
pricing model. To make a conditional … forecast, a representative agent may choose one
of the following: (1) a rational (or fundamentals-based) forecast that employs … knowledge
of the stochastic process governing dividends, (2) a constant forecast based on a simple
long-run average of the …