Consumption and Equilibrium Interest Rates in Stochastic Production Economies
Article Abstract:
The importance of stochastic production technologies and relative price uncertainty on the determination of equilibrium interest rates and their term structure is examined. Equilibrium interest rates show a mean reverting tendency when no relative price uncertainty exists. Equilibrium interest rates depend explicity on relative prices. Technology choice and the number of goods are crucial in determining the properties of equilibrium interest rates.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1984
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Government Security Dealers' Positions, Information and Interest-Rate Expectations: A Note
Article Abstract:
The inventory of government security dealers is examined to determine what factors influence the positions. The volume of trade, bid-ask spread, financing costs and uncertainty all influence the dealers' positions. Current knowledge of dealer positions can improve interest rate forecasts.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1983
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