Here's the Nikkei 225 as a dynamic equilibrium model (same as this one on the S&P 500):
The transition is centered at 2000.7 (likely due to the demographic transition).
PS It is interesting that both the Nikkei and S&P 500 have roughly the same average growth rate (neglecting the exogenous shocks) of ~ 11%.
Post a Comment
Comments are welcome. Please see the Moderation and comment policy.
Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.
Note: Only a member of this blog may post a comment.