The Equity Premium: Why is it a Puzzle? Export

@article{mehra-2003, abstract = {This article takes a critical look at the equity premium puzzle the inability of standard intertemporal economic models to rationalize the statistics that have characterized U.S. financial markets over the past century. A summary of historical returns for the United States and other industrialized countries and an overview of the economic construct itself are provided. The intuition behind the discrepancy between model prediction and empirical data is explained. After detailing the research efforts to enhance the model's ability to replicate the empirical data, I argue that the proposed resolutions fail along crucial dimensions}, author = {Mehra, Rajnish}, citeulike-article-id = {115232}, citeulike-linkout-0 = {http://www.nber.org/papers/w9512}, journal = {NBER Working Paper}, keywords = {asset\_pricing, macroeconomics}, month = {February}, number = {9512}, posted-at = {2005-03-06 12:24:44}, priority = {3}, title = {The Equity Premium: Why is it a Puzzle?}, url = {http://www.nber.org/papers/w9512}, year = {2003} }

TY - JOUR ID - mehra-2003 L3 - citeulike-article-id:115232 N2 - This article takes a critical look at the equity premium puzzle the inability of standard intertemporal economic models to rationalize the statistics that have characterized U.S. financial markets over the past century. A summary of historical returns for the United States and other industrialized countries and an overview of the economic construct itself are provided. The intuition behind the discrepancy between model prediction and empirical data is explained. After detailing the research efforts to enhance the model's ability to replicate the empirical data, I argue that the proposed resolutions fail along crucial dimensions IS - 9512 JF - NBER Working Paper TI - The Equity Premium: Why is it a Puzzle? KW - asset_pricing KW - macroeconomics AU - Mehra, Rajnish PY - 2003/02// UR - http://www.nber.org/papers/w9512 ER -