Japanese stock returns and investment: A test of production-based asset pricing model (original) (raw)
Japan and the World Economy, 1997
Abstract
This paper examines whether or not production-based asset pricing model holds for the Japanese stock market over the period 1971–1991. This model characterizes an intertemporal marginal rate of substitution as a function of the return on physical investment. An implication of the model is that returns on investment inferred from investment data through a production function and an adjustment cost
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