Author:
Andrić Vladimir,Nenadović Sanja
Abstract
The paper derives the equivalence condition between the Beveridge-Nelson decomposition and the Hansen-Sargent prediction formula in continuous time using Laplace transforms. The results presented show how the Hansen-Sargent prediction formula is relevant not just for present value discounting but also for the trend-cycle decomposition of cash flow streams in corporate finance.
Publisher
Centre for Evaluation in Education and Science (CEON/CEES)
Subject
General Business, Management and Accounting
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