The loss aversion / narrow framing approach to the equity premium puzzle
by Nicholas Barberis
"We review a recent approach to understanding the equity premium puzzle. The key elements of this approach are loss aversion and narrow framing, two well-known features of decision-making under risk in experimental settings. In equilibrium, models that incorporate these ideas can generate a large equity premium and a low and stable risk-free rate, even when consumption growth is smooth and only weakly correlated with the stock market. Moreover, they can do so for parameter values that correspond to sensible attitudes to independent monetary gambles. We conclude by suggesting some possible directions for future research"--National Bureau of Economic Research web site.
Buy this book
| Edition | Availability |
|---|---|
1
The loss aversion / narrow framing approach to the equity premium puzzle
2006, National Bureau of Economic Research
electronic resource /
in English
|
aaaa
|
Book Details
Edition Notes
Title from PDF file as viewed on 7/26/2006.
Includes bibliographical references.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.
Classifications
External Links
The Physical Object
Edition Identifiers
Work Identifiers
Community Reviews (0)
Lists
History
- Created December 17, 2020
- 1 revision
Wikipedia citation
×CloseCopy and paste this code into your Wikipedia page. Need help?
| December 17, 2020 | Created by MARC Bot | Imported from Library of Congress MARC record |