EconPapers    
Economics at your fingertips  
 

Equity Pricing New Keynesian Models with Nominal Rigidities and Investment

Rahul Nath

No 850, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper derives explicitly an equity pricing relationship in a simple New Keynesian model. This relationship is used to study the equity pricing implications of New Keynesian models. I ï¬ nd that New Keynesian models suffer from the same asset pricing shortcomings as more traditional RBC versions and that this can be attributed to the presence of nominal rigidities. I then add capital adjustment costs to study how the interaction of both investment adjustment costs and capital adjustment costs affect the results.

Keywords: Asset Pricing; New Keynesian; Nominal Rigidities; Investment Adjustment Costs; Capital Adjustment Costs (search for similar items in EconPapers)
JEL-codes: E12 E22 E44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2018-05-30
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.economics.ox.ac.uk/materials/working_p ... s-and-investment.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oxf:wpaper:850

Access Statistics for this paper

More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ().

 
Page updated 2019-09-16
Handle: RePEc:oxf:wpaper:850