Social Security and the Equity Premium Puzzle

Report, Preprint OPEN
Olovsson, Conny;
(2004)
  • Publisher: Stockholm : IIES
  • Subject: Economics | the equity premium puzzle | social security | asset prices | Nationalekonomi | Asset prices; the equity premium puzzle; social security
    • jel: jel:G12 | jel:H55

This paper shows that social security may be an important factor in explaining the equity premium puzzle. In the absence of shortselling constraints, the young shortsell bonds to the middle-aged and buy equity. Social security reduces the bond demand of the middle-aged,... View more
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