McGrattan, Ellen R.; Prescott, Edward C. - In: International Economic Review 45 (2004) 4, pp. 991-1009
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...