Equity pricing New Keynesian models with nominal rigidities and investment

This paper derives explicitly an equity pricing relationship in a simple New Keynesian model. This relationship is used to study the equity pricing implications of New Keynesian models. I ?nd that New Keynesian models su?er from the same asset pricing shortcomings as more traditional RBC versions an...

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Bibliographic Details
Main Author: Nath, R
Format: Working paper
Published: University of Oxford 2018