Implications of incomplete markets for international economies
We develop a restriction that precludes implausibly high reward-for-risk in incomplete international economies to consider a theoretical problem that characterizes a lower bound on the covariance between stochastic discount factors (SDFs) subject to correct pricing. The problem is analytically solva...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Oxford University Press
2018
|
| Online Access: | View Fulltext in Publisher |