Improved tests for stock return predictability
(2023)
Journal Article
Harvey, D. I., Leybourne, S. J., & Taylor, A. M. R. (2023). Improved tests for stock return predictability. Econometric Reviews, 42(9-10), 834-861. https://doi.org/10.1080/07474938.2023.2222634
Predictive regression methods are widely used to examine the predictability of (excess) stock returns by lagged financial variables characterized by unknown degrees of persistence and endogeneity. We develop a new hybrid test for predictability in th... Read More about Improved tests for stock return predictability.