This article considers the relation between the US Dow Jones Industrial Average (Dow) and the US dollar. Monthly data sets that cover the float period of foreign exchange rates are used. Least square regressions with calendar breakpoints are estimated. The evidence is strong that for the ten...

A model due to Lucas is estimated between the real stock market returns and real dividends on the market index. The sample spans the period from 1872 to 1987 on an annual basis. The results are close to theoretical expectations: the coefficient of relative risk aversion, which minimizes the sum...

Dynamic programming is often used by researchers to find the first-order Euler relation when the discounted utility of an infinite stream of consumption is maximized, subject to one or more constraints. Although the consumption model is the same in most studies, the specification of the...