Habit Formation: A Resolution of the Equity Premium Puzzle

• 1 June 1990
• journal article
• Published by University of Chicago Press in Journal of Political Economy
• Vol. 98  (3) , 519-543
• https://doi.org/10.1086/261693

Abstract

Keywords

• RISK AVERSION
• HABIT FORMATION
• RATIONAL EXPECTATION
• RATE OF RETURN
• EQUITY PREMIUM PUZZLE
• RELATIVE RISK AVERSION