This paper was begun during a visit at the Cowles Foundation in Fall 2000 and revised during a visit in Fall 2002: Michael Magill and Martine Quinzii are grateful for the stimulating environment and the research support provided by the Cowles Foundation. We are also grateful to Bob Shiller for helpful discussions, and to participants at the Cowles Conference on Incomplete Markets at Yale University, the SITE Workshop at Stanford University, the Incomplete Markets Workshop at SUNY Stony Brook during the summer 2001, the Southwest Economic Conference at UCLA, and the Conference for the Advancement of Economic Theory at Rhodes in 2003 for helpful comments. Many thanks to Bill Brainard whose numerous insightful questions and comments greatly improved the final version of the paper. Unfortunately the authors are solely responsible for the remaining weaknesses.
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Length: 55 pages Date of creation: Aug 2002 Date of revision:
Jul 2004 Publication status: Published in Brookings Papers on Economic Activity (2004), 1: 241-325 Handle: RePEc:cwl:cwldpp:1380r
Find related papers by JEL classification: E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy G12 - Financial Economics - - General Financial Markets - - - Asset Pricing J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
John Heaton & Deborah Lucas, 2000.
"Stock prices and fundamentals,"
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[Downloadable!]
Other versions:
John Heaton & Deborah Lucas, 2000.
"Stock Prices and Fundamentals,"
NBER Chapters,
in: NBER Macroeconomics Annual 1999, Volume 14, pages 213-264
National Bureau of Economic Research, Inc.
[Downloadable!]
Basu, Parantap, 1987.
"An Adjustment Cost Model of Asset Pricing,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 609-21, October.
[Downloadable!] (restricted)
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