Premium
THE TERM STRUCTURE OF INTEREST RATES: EVIDENCE AND THEORY
Author(s) -
Melino Angelo
Publication year - 1988
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/j.1467-6419.1988.tb00051.x
Subject(s) - term (time) , economics , yield curve , rational expectations , perspective (graphical) , financial economics , capital asset pricing model , econometrics , interest rate , asset (computer security) , positive economics , macroeconomics , computer science , physics , quantum mechanics , artificial intelligence , computer security
. The term structure of interest rates is an old topic. Over the years, both the hypotheses debated and the research techniques used have changed considerably. Two fairly recent developments which distinguish current research are the widespread adoption of rational expectations and the integration of the term structure with the general theory of asset pricing. This survey reviews previous work from this perspective. The main objective is to catalogue available evidence about term premia and to interpret this evidence in light of alternative models of term premia determination.