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Journal of Finance Vol. 40 No. 3 1985

An Unbiased Reexamination of Stock Market Volatility

N. Gregory Mankiw; David Romer; Matthew D. Shapiro1

1 Georg Fischer (Switzerland)

Abstract

Recent work demonstrates serious statistical problems with standard volatility tests. This paper proposes new tests that are unbiased in small samples and that do not require assumptions of stationarity. The new tests continue to find evidence against the model positing rational expectations and a constant required rate of return on equity.

DOI
10.1111/j.1540-6261.1985.tb04990.x
Volume
40
Issue
3
Pages
677-687
Language
en
Sources
crossref openalex

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