High equity premia and crash fears -- rational foundations (Q2502343): Difference between revisions
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Revision as of 07:22, 5 March 2024
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | High equity premia and crash fears -- rational foundations |
scientific article |
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High equity premia and crash fears -- rational foundations (English)
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12 September 2006
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This paper deals with Lucas-style economies and gives new contributions to equilibrium recursive rational learning. The key condition for these results to obtain is the presence of sufficient initial pessimism. Some real-world examples are added. Mathematically, to show the existence of equilibria, a global discussion of the modelling functions (having a stochastic behavior as background) is possible.
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Rational learning
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Equity premium
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Initial pessimism
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Lucas-style economy
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