Ludvigson, Sydney; Nieuwerburgh, Stijn Van; Favilukis, Jack - Society for Economic Dynamics - SED - 2010
bond markets calibrated to match the increase in foreign ownership of U.S. Treasury and agency debt from 2000-2007 generates an increase in national price-rent ratios comparable to that observed in U.S. data over this period. Moreover, in a simulated transition for the period 2000-2009, the...