Is there evidence of pessimism in subjective distributions in Singapore? Implications on the equity premium puzzle

• Main Authors: Cheong, Allen Yong Fei, Wong, Mun Mun
• Other Authors: Kang Min Wook
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/69773
• Institution: Nanyang Technological University

Abel (2002) defines uniform pessimism as the subjective distribution being a leftward shift of the objective distribution. He shows that pessimism in the subjective distribution of growth rate of consumption and output can help resolve the equity premium puzzle. We examine his model and investigate...