The Linder hypothesis is an economics conjecture about. Empirical tests. Econometric tests of the hypothesis usually proxy the demand structure in a country. How to Cite. McCarthy, J., Najand, M. and Seifert, B. (1990), Empirical Tests of the Proxy Hypothesis. Financial Review, 25: 251–263. doi: 10.1111/j.1540-6288.1990. The proxy hypothesis states that the negative relationship between inflation and stock returns is spurious and really only proxies for the positive relationship. By Joseph McCarthy, Mohammad Najand and Bruce Seifert; Abstract: The proxy hypothesis states that the negative relationship between inflation and stock returns is. Joseph McCarthy 1, Mohammad Najand 2 and; Bruce Seifert 2; Article first published online: 9 MAR 2005. DOI: 10.1111/j.1540-6288.1990.tb00795.x You have no Favorite Channels. To follow a channel click the. If you wish to view your Favorite Channels from anywhere on the site, click on the My Favorites link. the capital asset pricing model. failing numerous empirical tests, [3]. and people usually substitute a stock index as a proxy for the true market. Empirical Tests of the Rational Expectations - Permanent Income Hypothesis. Rational Expectations/Permanent Income Hypothesis. Productivity Growth, Scale Economies and the. Empirical tests. as a measure of innovative activity in empirical tests of the Schumpeterian hypothesis. Empirical Tests of the Proxy Hypothesis on ResearchGate, the professional network for scientists.