The Martin Integral Representation of Markovian Pricing Kernels
The purpose of this article is to describe all possible beliefs of market participants on objective measures under Markovian environments when a risk-neutral measure is given. To achieve this, we employ the Martin integral representation of Markovian pricing kernels. Then, we offer economic and financial implications of this representation. This representation is useful to analyze the long-term behavior of the state variable in the market. The Ross recovery theorem and the long-term behavior of cash flows are discussed as applications.