EconPapers    
Economics at your fingertips  
 

Junior Can't Borrow: A New Perspective on the Equity Premium Puzzle

George Constantinides, J.B. Donalson and Rajnish Mehra

Working Papers from Columbia - Graduate School of Business

Abstract: Ongoing questions on the historical mean and standard deviation of the return on equities and bonds and on the equilibrium demand for these securities are addressed in the context of a stationary, overlapping-generations economy in which consumers are subject to a borrowing constraint. The key feature captured by the OLG economy is that the bulk of the future income of the young agents is derived from their wages forthcoming in their middle age, while the bulk of the future income of the middle-aged agents is derived from their savings in equity and bonds.

Keywords: EQUITY; BONDS (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Junior Can't Borrow: A New Perspective on the Equity Premium Puzzle (2002) Downloads
Working Paper: Junior Can't Borrow: A New Perspective on the Equity Premium Puzzle (1998) Downloads
Working Paper: Junior Can't borrow: A New Perspective on the Equity Premium Puzzle."
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:colubu:97-24

Access Statistics for this paper

More papers in Working Papers from Columbia - Graduate School of Business U.S.A.; COLUMBIA UNIVERSITY, GRADUATE SCHOOL OF BUSINESS, PAINE WEBBER , New York, NY 10027 U.S.A. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().

 
Page updated 2024-10-11
Handle: RePEc:fth:colubu:97-24
            
pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy