Mateo Rodriguez Polo

We study a representative-agent Epstein-Zin economy with geometric dividends and a hidden finite-state Markov drift. We allow the price-dividend ratio to contain an additional positive, absolutely continuous valuation factor and, within the class $\mathfrak C$ defined below and under the regularity, admissibility, and positivity conditions of our main theorem, equilibrium forces this factor to be constant, yielding belief-Markovian prices.