Startz, Richard; Tsang, Kwok Ping - Department of Economics, Virginia Polytechnic Institute … - 2014
cross-section version of checking the random walk model and the present value model holds up well. In contrast, using three … different samples that go as far back as 1926, the present value model is rejected decisively at moderate and long horizons. We … consistent with the present value model, or that models of discount rates are too limited to allow the present value model to be …