Movements in the Equity Premium
نویسندگان
چکیده
منابع مشابه
Movements in the Equity Premium
REAL BOND RATES increased sharply in the early 1980s and have remained high since. Even today, in the midst of a world recession and low U.S. and Japanese short real rates, long real rates throughout the world remain unusually high. Pessimists trace the high rates to a decrease in the supply of capital. They point to the long string of fiscal deficits and to the decline in household saving and ...
متن کاملEstimating the Equity Premium
To estimate the equity premium, it is helpful to use finance theory: not the old-fashioned theory that efficient markets imply a constant equity premium, but theory that restricts the time-series behavior of valuation ratios, and that links the cross-section of stock prices to the level of the equity premium. Under plausible conditions, valuation ratios such as the dividend-price ratio should n...
متن کاملEstimating the Equity Premium
To estimate the equity premium, it is helpful to use finance theory: not the old-fashioned theory that efficient markets imply a constant equity premium, but theory that restricts the time-series behavior of valuation ratios, and that links the cross-section of stock prices to the level of the equity premium. Under plausible conditions, valuation ratios such as the dividend-price ratio should n...
متن کاملEstimating the Equity Premium
Existing empirical research investigating the size of the equity premium has largely consisted of a series of innovations around a common theme: producing a better estimate of the equity premium by using better data or a better estimation technique. The equity premium estimate that emerges from most of this work matches one moment of the data alone: the mean difference between an estimate of th...
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ژورنال
عنوان ژورنال: Brookings Papers on Economic Activity
سال: 1993
ISSN: 0007-2303
DOI: 10.2307/2534565