What Moves the Stock and Bond Markets? A Variance Decomposition for Long-Term Asset Returns

This rened, is reprinted and summarined in Shi5er (1950) Earns uses leads of some variables a. well as conlemporaneous values.This is an informal way to allow for extra information that market participants may have about future macroecononuc developments.ology.Section 4 presents empirical results for U.S. data over the period 1052-1987, and section 5 concludes.