Statements (57)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
economic puzzle
|
| gptkbp:describes |
the observed difference between returns on stocks and government bonds
|
| gptkbp:field |
finance
macroeconomics |
| gptkbp:firstPublished |
1985
|
| gptkbp:formedBy |
gptkb:Edward_Prescott
gptkb:Rajnish_Mehra |
| https://www.w3.org/2000/01/rdf-schema#label |
Equity Premium Puzzle
|
| gptkbp:influenced |
behavioral finance
asset pricing research |
| gptkbp:problemStatement |
Standard economic models cannot explain the large historical equity premium with reasonable levels of risk aversion.
|
| gptkbp:relatedTo |
gptkb:stock_market_index
asset pricing government bonds risk aversion expected returns consumption-based asset pricing model |
| gptkbp:solvedBy |
gptkb:economic_policy
census taxation corporate governance globalization ambiguity aversion transaction costs institutional investors survivorship bias political risk financial innovation market segmentation technological change social interactions overconfidence habit formation institutional constraints incomplete markets idiosyncratic risk market frictions borrowing constraints heterogeneous agents liquidity constraints behavioral explanations consumption risk fat tails in return distributions income risk information frictions learning and belief updating limited stock market participation long-run risks model misspecification myopic loss aversion non-expected utility preferences psychological biases rare disasters regulatory factors time-varying risk aversion |
| gptkbp:bfsParent |
gptkb:Rajnish_Mehra
|
| gptkbp:bfsLayer |
6
|