Market Hypothesis sense. The paper tries to show that this so-called excess volatility is to a large extend the result of the …, constant dividend growth rates as well as non-variable discount rates. It is shown that indeed volatility declines considerably … cashflow ; excess volatility ; variance bound test ; rational expectations …

implications from a long-run risk model incorporating both time varying volatility and volatility uncertainty. We provide new … direct estimation of the underlying “structural” shocks and economic transmission mechanisms, including a new volatility …

debt. Further, more inflexible firms display a stronger link between yield spreads and cash flow volatility, a stronger … link between yield spreads and stock volatility (Campbell and Taksler, 2003) as well as a closer connection between changes …