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Rethinking Valuation and Pricing Models by Greg N. Gregoriou, Christian Hoppe, Carsten Wehn

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16

Discount Rates, Default Risk and Asset Pricing in a Regime Change Model

Pu Chen and Willi Semmler∗∗

The New School for Social Research, New York, and Center for Empirical Macroeconomics Bielefeld

∗∗Dept of Economics, New School for Social Research, NY, USA

Chapter Outline

16.1 Introduction

In the United States, ...

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