Public Investment and the Risk Premium for Equity

Grant, Simon; Quiggin, John

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Public Investment and the Risk Premium for Equity

Date

2003

Authors

Grant, Simon

Quiggin, John

Publisher

Blackwell Publishing Ltd

Abstract

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