In this paper, the author generalizes R. E. Lucas's asset pricing model to allow for nonstationary consumption. He defines the e quilibrium in this setting and demonstrates its existence and represe ntation as a competitive equilibrium. The author believes that these extensions will facilitate...

Necessary conditions for equilibrium are that beliefs about the behavior of other agents are rational and individuals maximize. We argue that in stationary OLG environments this implies that any future generation in the same situation as the initial generation must do as well as the initial...

Many stock market analysts think that in 1929, at the time of the crash, stocks were overvalued. Irving Fisher argued just before the crash that fundamentals were strong and the stock market was undervalued. In this article, we use growth theory to estimate the fundamental value of corporate...