← Search

American Economic Review Vol. 98 No. 2 2008

Disasters and Recoveries

François Gourio

Boston University, Department of Economics, 270 Bay State Road, Boston MA 02215.

Abstract

Twenty years ago, Thomas A. Rietz (1988) showed that infrequent, large drops in consumption make the theoretical equity premium large. Recent research has resurrected this ‘disaster’explanation of the equity premium puzzle. Robert J. Barro (2006) measures disasters during the XXth century, and …nds that they are frequent and large enough, and stock returns low enough relative

DOI
10.1257/aer.98.2.68
Volume
98
Issue
2
Pages
68-73
Language
en
Sources
bibtex:phds-export.bib crossref openalex

Cite