Presentación: Índice de Competitividad Cantonal, Costa Rica 2022-2023
De parte de la Escuela de Economía de la Universidad
This paper obtains monthly implied volatilities of the NYSE from1900 to 1934 from interest rate differentials. The resulting impliedvolatilities were about 40% higher than their modern (2007-2019) coun-terparts, justifying an market risk premium almost twice as high as thecurrent level.