THE MODIGLIANI-MILLER THEOREM IN A DYNAMIC ECONOMY

A dynamic economy with markets of equities and bonds is considered. The rational expectations equilibrium is defined in an asset pricing model and a condition under which the Modigliani-Miller theorem holds is shown. In an aggregate model the existence of a rational expectations equilibrium is proved.

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Year of publication:	2010
Authors:	TAKEKUMA, SHIN-ICHI
Published in:	Hitotsubashi Journal of Economics. - Graduate School of Economics. - Vol. 51.2010, 1, p. 43-55
Publisher:	Graduate School of Economics
Subject:	The Modigliani-Miller theorem \| rational expectations \| asset pricing

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	C02 - Mathematical Methods ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D80 - Information and Uncertainty. General ; D90 - Intertemporal Choice and Growth. General ; O41 - One, Two, and Multisector Growth Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009206376