Learning, Structural Instability and Present Value Calculations

56 Pages Posted: 8 Jun 2016

See all articles by M. Hashem Pesaran

M. Hashem Pesaran

University of Southern California - Department of Economics

Davide Pettenuzzo

Brandeis University - International Business School

Allan Timmermann

UCSD ; Centre for Economic Policy Research (CEPR)

Date Written: 2006

Abstract

Present value calculations require predictions of cash flows both at near and distant future

Keywords: present value, stock prices, structural breaks, Bayesian learning

JEL Classification: G22, G12, C11

Suggested Citation

Pesaran, M. Hashem and Pettenuzzo, Davide and Timmermann, Allan, Learning, Structural Instability and Present Value Calculations (2006). Bundesbank Series 1 Discussion Paper No. 2006,27, Available at SSRN: https://ssrn.com/abstract=2785254 or http://dx.doi.org/10.2139/ssrn.2785254

M. Hashem Pesaran (Contact Author)

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave. Kaprielian (KAP) Hall 300
Los Angeles, CA 90089
United States

Davide Pettenuzzo

Brandeis University - International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

Allan Timmermann

UCSD ( email )

9500 Gilman Drive
La Jolla, CA 92093-0553
United States
858-534-0894 (Phone)

HOME PAGE: http://rady.ucsd.edu/people/faculty/timmermann/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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