The mathematics of the Gordon model
, that is, dividing the last monthly EPI by the earliest monthly EPI then deducting 1 from the quotient is the shortcut used to compute for the growth rate for 2006-2017.
Using first the simple Gordon formula, and then Campbell and Shiller's log-linearized dynamic Gordon model
, we derive quantitative implications for the effects of innovations in the short-term rate on an asset that could be thought of as land or the stock of an unlevered firm.
 in a study entitled "The combination of multi-criteria decision making techniques (MCDM ) To select stocks based on the Gordon model
perspective "effective measures identified in the share price.
Similar to the Gordon model
, solution of the implied cost of capital produces a value greater than the estimated probabilistic growth, measured as the probability times the average increase (p[DELTA]).
The model most often mentioned in connection with the level of asset prices is the Gordon model
In order to compare the methods for estimating this variable, this work investigates whether there are statistically significant differences among the equity capital costs estimated for Brazilian companies through the following models: i) Gordon model
; ii) capital asset pricing model (CAPM); iii) arbitrage pricing model (APM); and iv) Ohlson-Juettner model (OJ).
In brief, the Gordon model
of regional politics begins with the understanding that formal structures shape the parameters of an effective political strategy.
Under the assumptions that all cash flows are reinvested in the enterprise at the discount rate, R (or are distributed and available for reinvestment at R), and that cash flow (CF) will grow at a constant rate, G, the basic valuation equation has been shown to be equivalent to the Gordon Model
(the right-hand side of Equation 1).
The models that have been proposed vary from the simplest Gordon model
with constant dividend growth rates and constant discount rates to multistage models with the growth rates varying in a step-wise manner--constant for a period of time (a step) and then shifting to a new level for a period of time (see, for instance, Brooks and Helms 1990, Barsky and DeLong 1993).
Applying this model using data on the S&P 500 (obtained from the S&P Analyst Handbook [various]), a regression test indicated that long-term stock returns equal, on average, 4.99 percent plus .83 times the Gordon model
forecast of expected returns (as shown in Table 1).
The present value relation We will set up our present value relation, for the econometric work that follows, as a sort of dynamic Gordon model
replacing the original Gordon model
(1962), which was a steady-state growth path condition.