Estimating the Equity Premium
| Title: | Estimating the Equity Premium |
| Author: | Campbell, John |
| Citation: | Campbell, John Y. 2008. Estimating the equity premium. Canadian Journal of Economics 41(1): 1-21. |
| Full Text & Related Files: |
campbellnber_equitypremium.pdf (432.1Kb; PDF) 
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| Abstract: | Finance theory restricts the time-series behaviour of valuation ratios and links the cross-section of stock prices to the level of the equity premium. This can be used to strengthen the evidence for predictability in stock returns. Steady-state valuation models are useful predictors of stock returns, given the persistence in valuation ratios. A steady-state approach suggests that the world geometric average equity premium fell considerably in the late twentieth century, rose modestly in the early years of the twenty-first century, and was almost 4% at the end of March 2007. |
| Published Version: | http://www3.interscience.wiley.com/journal/119388929/abstract |
| Terms of Use: | This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA |
| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:3196339 |
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