Atkeson, Andrew; Heathcote, Jonathan; Perri, Fabrizio - National Bureau of Economic Research - 2024
We present two valuation models that we use to account for the annual data on price per share and dividends per share … purely on a model of variation in the expected ratio of dividends per share to aggregate consumption over time under two … conditions. First, investors must receive news shocks regarding the expected ratio of dividends per share to aggregate …