The Equity Premium in Retrospect

E802232

"The Equity Premium in Retrospect" is a highly influential paper by John Cochrane that surveys and analyzes the historical equity premium puzzle and its implications for asset pricing theory.

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The Equity Premium in Retrospect canonical 1

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Predicate Object
instanceOf academic paper
finance research article
addresses calibration of asset pricing models
difference between stock returns and risk-free returns
empirical validation of asset pricing theories
aimsTo assess implications for macroeconomic modeling
clarify the magnitude of the equity premium
evaluate proposed resolutions of the equity premium puzzle
analyzes consumption-based models
historical equity premium data
implications for asset pricing theory
representative agent models
author John H. Cochrane NERFINISHED
citedFor comprehensive overview of the equity premium puzzle
critical evaluation of asset pricing models
concludes risk aversion required by standard models is implausibly high
standard models struggle to match observed equity premium
discusses habit formation models
implications for macro-finance models
implications for portfolio choice
long-run risk models
market incompleteness
measurement issues in historical returns
rare disaster models
survivorship bias in return data
field asset pricing
financial economics
macroeconomics
focusesOn U.S. historical return data
genre survey article
theoretical analysis
hasInfluenceOn asset pricing theory
macroeconomic asset pricing models
subsequent equity premium research
influencedBy Mehra and Prescott equity premium puzzle
consumption-based CAPM literature
language English
mainTopic asset pricing puzzles
consumption-based asset pricing
equity premium puzzle
equity risk premium
historical stock returns
risk-free rate
proposes interpretations of the equity premium puzzle
surveys empirical evidence on equity returns
literature on the equity premium puzzle
theoretical explanations of the equity premium

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John Cochrane notableWork The Equity Premium in Retrospect