We suggest an alternative approach to testing whether stocks provide a hedge against inflation in the long run. Based on a simple structural model, we test the hedge hypothesis in terms of the long-run linkage between stock prices and the general price level, as estimated by cointegration...

Using annual data over the post-World War I-period, we estimate a fundamentals-based empirical model for the dividend-price ratio of Danish stocks. The key fundamentals-variable is a time-varying discount rate, decomposed into time-varying measures for the growth-adjusted real interest rate and...

Using annual data over the post-World War I-period, we estimate a fundamentals-based <p> empirical model for the dividend-price ratio of Danish stocks. The key fundamentals-variable <p> is a time-varying discount rate, decomposed into time-varying measures for the growth-adjusted <p> real interest rate...</p></p></p>

We suggest an alternative approach to testing whether stocks provide a hedge against <p> inflation in the long run. Based on a simple structural model, we test the hedge hypothesis in <p> terms of the long-run linkage between stock prices and the general price level, as estimated <p> by cointegration...</p></p></p>