Siegel, Jeremy J.; Thaler, Richard H. - In: Journal of Economic Perspectives 11 (1997) 1, pp. 191-200
The equity premium is the difference in returns between equities and fixed income securities, such as Treasury bills. The puzzle refers to the fact that the premium has historically been very large--about 6 percent per year--too large to be easily explained by risk aversion. The authors document...
