Common stocks as a hedge against inflation: Evidence from century-long US data

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 113
Issue: 2
Pages: 168-171

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We find strong evidence that US common stocks have been a hedge against inflation in the long run, from the early 1950s. Adopting a two-regime threshold vector error-correction model, we find that the stock price and the goods price are co-integrated with unit elasticity, with stock return and inflation showing asymmetric error correction.

Technical Details

RePEc Handle
repec:eee:ecolet:v:113:y:2011:i:2:p:168-171
Journal Field
General
Author Count
2
Added to Database
2026-01-25