GMM in explicit discount factor model Asset pricing model predicts that E(p)=E[m(data, l,parameters)x,+1 The most natural way to check this prediction is to examine sample average, 1,. e, to calculate ∑na0.m(bamrGMM in explicit discount factor model • Asset pricing model predicts that • The most natural way to check this prediction is to examine sample average, i,.e., to calculate • and ( ) [ ( , ) ] t = t+1 t+1 E p E m data parameters x ∑= T t t p T 1 1 ∑= + + T t t t m data parameters x T 1 1 1 [ ( , ) ] 1