THE MODIGLIANI-MILLER THEOREM IN A DYNAMIC ECONOMY

@inproceedings{Takekuma2010THEMT,
  title={THE MODIGLIANI-MILLER THEOREM IN A DYNAMIC ECONOMY},
  author={Shin-ichi Takekuma},
  year={2010}
}
A dynamic economy with markets of equities and bonds is considered. The rational expectations equilibrium is defined in an asset pricing model and a condition under which the Modigliani-Miller theorem holds is shown. In an aggregate model the existence of a rational expectations equilibrium is proved. 

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