Engel, Charles - In: Journal of Money, Credit and Banking 37 (2005) 5, pp. 949-55
When equity prices are determined as the discounted sum of current and expected future dividends, Shiller (1981) and LeRoy and Porter (1981) derived a relationship between the variance of the price of equities, p[subscript t] and the variance of the ex post realized discounted sum of current and...