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) estimation of 46 states over the period from 1998 to 2017. The findings confirm that the PMG estimates of the effect of stock … reject the null of no cointegration among the models' variables, which contrasts with the pervasive view concerning the …
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A large part of the current debate on US stock price behavior concentrates on the question of whether stock prices are driven by fundamentals or by non-fundamental factors. In this paper we put forward the hypothesis that a present value model with time-varying expected returns provides an...
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