Please can someone explain where the Wilkie model for dividend growth comes from? I can reason the others but a bit lost with this one. Thanks.
Wilkie model for dividend growth Essentially: K(t) = a constant addition to a smoothed inflation measure, but with adjustments, due to zero-mean variable "shocks" feeding in from the equity dividend yield and dividend income processes. It's worth stressing that this is just one possible model - the key question for you to ask is: "Am I happy that K(t) should depend on these factors?". Hopefully, they all seem reasonable.
