Wei, Chao; Joutz, Fred - In: Applied Financial Economics 21 (2011) 21, pp. 1599-1603
Campbell and Vuolteenaho (CV, 2004) empirically decompose the S&P 500's dividend yield from 1927 to 2002 to derive a measure of residual mispricing attributed to inflation illusion. They argue that the strong positive correlation between the mispricing component and inflation is strong evidence...