The Results of the Equity Premium January 2009 Survey

Posted: 8 Dec 2009

See all articles by Ivo Welch

Ivo Welch

University of California, Los Angeles (UCLA); National Bureau of Economic Research (NBER)

Date Written: January 1, 2009

Abstract

As to the equity premium, the 2008 decline in the stock market has made economists mildly more bullish about future stock market rates of return. Typical expected equity premia are between 5% and 6% per year.

As to policy, the recommended fiscal stimulus is around $700 billion. A large majority feel that a financial bailout was necessary, that the government should stop equity dividends of banks that receive TARP funds, and that corporate governance is broken. A majority feels that the (Bush) government has spent the first half of the TARP funds badly. And a small majority feels that the government should force debt-to-equity conversions for banks that receive TARP funds.

Keywords: equity premium

Suggested Citation

Welch, Ivo, The Results of the Equity Premium January 2009 Survey (January 1, 2009). Available at SSRN: https://ssrn.com/abstract=1519544

Ivo Welch (Contact Author)

University of California, Los Angeles (UCLA) ( email )

110 Westwood Plaza
C519
Los Angeles, CA 90095-1481
United States
310-825-2508 (Phone)

HOME PAGE: http://www.ivo-welch.info

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
582
PlumX Metrics