Our goal in this paper is two-fold. First, we develop a class of term structure models that allow for the role of … structure models. We indentify a set of sufficient conditions to generate the observational equivalence between affine term-structure … bounded rationality by incorporating either information-processing constraint or fear for mis-specification into affine term …

When the relationship between security prices and state variables in dynamic term structure models is nonlinear … observations, such as the estimation of term structure models using coupon bonds and the estimation of quadratic term structure … models. …