« How to teach microeconomics | Main | How to walk through a museum »
Has Robert Barro solved the equity premium puzzle?
My macro class should read this blog post. Here is another good paper on the topic. If you want my view of the equity premium paradox, we have to ask whether Bryan Caplan is stupid. Choice is context-dependent, and we should not be too worried if no single utility function can account for all of our investment decisions.
Posted by Tyler Cowen on September 30, 2005 at 06:24 AM in Economics | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c66b253ef00e5508352a58833
Listed below are links to weblogs that reference Has Robert Barro solved the equity premium puzzle?:
» Equity Premium Chatter from Political Animal
EQUITY PREMIUM CHATTER....Via Tyler Cowen, New Economist has an interesting roundup of reactions to a new paper by Robert Barro purporting to explain the equity premium puzzle. In a nutshell, the puzzle is this: why do U.S. stocks have a... [Read More]
Tracked on Sep 30, 2005 2:43:56 PM
