References (11)


Citations (4)



The Fed Model: A Note

Javier Estrada

IESE Business School

November 2005

The negative relationship between market P/E ratios and government bond yields seems to have become conventional wisdom among practitioners. Both (limited) empirical evidence and a (misleading) suggestion that the model originated in the Fed are used to support the model's plausibility. The evidence in this note, from 20 international markets, seriously questions the wide acceptance and use of this model.

Number of Pages in PDF File: 11

Keywords: Fed model, stock pricing, p/e ratios

JEL Classification: G11, G12, G15

Open PDF in Browser Download This Paper

Date posted: November 10, 2005  

Suggested Citation

Estrada, Javier, The Fed Model: A Note (November 2005). Available at SSRN: http://ssrn.com/abstract=841787 or http://dx.doi.org/10.2139/ssrn.841787

Contact Information

Javier Estrada (Contact Author)
IESE Business School ( email )
IESE Business School
Av. Pearson 21
Barcelona, 08034
+34 93 253 4200 (Phone)
+34 93 253 4343 (Fax)
Feedback to SSRN

Paper statistics
Abstract Views: 1,351
Downloads: 318
Download Rank: 62,917
References:  11
Citations:  4

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.265 seconds