Term structures of asset prices and returns

A-Tier
Journal: Journal of Financial Economics
Year: 2018
Volume: 129
Issue: 1
Pages: 1-23

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We explore the term structures of claims to a variety of cash flows, namely, US government bonds (claims to dollars), foreign government bonds (claims to foreign currency), inflation-adjusted bonds (claims to the price index), and equity (claims to future equity indexes or dividends). The average term structures reflect the dynamics of the dollar pricing kernel, cash flow growth, and the interaction between the two. We use an affine model to illustrate how these two components can deliver term structures with a wide range of levels and shapes. Finally, we calibrate a representative agent economy to show that the evidence is consistent with the equilibrium models.

Technical Details

RePEc Handle
repec:eee:jfinec:v:129:y:2018:i:1:p:1-23
Journal Field
Finance
Author Count
3
Added to Database
2026-01-24