Journal Article State Preference and the Riskless Interest Rate: A Markov Model of Capital Markets Get access Avraham Beja Avraham Beja New York University and Tel-Aviv University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 46, Issue 3, July 1979, Pages 435–446, https://doi.org/10.2307/2297012 Published: 01 July 1979 Article history Received: 01 September 1976 Accepted: 01 January 1978 Published: 01 July 1979