Public Investment and the Risk Premium for Equity
Bibliographic Data
| ID | 9724438 |
|---|---|
| Authors | Simon Grant (0000-0002-9543-8536, Australian National University), John Quiggin (0000-0003-0398-8280, Australian National University) |
| Year | 2003 |
| Volume | 70 |
| Issue | 277 |
| Pages | 1-18 |
| Publication date | 2003-02-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.t01-1-00268 |
| OpenAlex | W2118820071 |
| Language | EN |
| Citations received | 3 |
| References cited | 17 |
Analysis of the equity premium puzzle has focused on private‐sector capital markets. However, the existence of an anomalous equity premium raises important issues in the evaluation of public‐sector investment projects. These issues are explored below. We begin by formalizing the argument that an equity premium may arise from uninsurable systematic risk in labour income, and show that, other things being equal, increases in public ownership of equity will improve welfare, up to the point where the equity premium is eliminated. Finally, we consider policy implications and the optimal extent of public ownership
Argument (complex analysis) · Club deal · Economics · Equity (law) · Equity capital markets · Equity premium puzzle · Equity risk · Financial economics · Private equity · Private equity firm · Private equity fund · Private investment in public equity · Public economics · Public sector · Risk premium · Economic theories and models · Finance · Financial Literacy, Pension, Retirement Analysis · Financial Markets and Investment Strategies · Housing Market and Economics
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,14 |
| Citation span | 2004 - 2026 (23) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 3 |