Wang, Pengfei; Wen, Yi - 2009
.S. business cycles and asset price volatility. Section 4 concludes the paper.
2 The Basic Model
2.1 Firms
There is a continuum of …
price movements lead the business cycle and provide a key litmus test of business cycle models (see Cogley
and Nason, 1995 … the
U.S. economy. In the data, the correlation between stock prices and output at the business cycle frequencies
is 0 …