Economic puzzle
A puzzle in economics is a situation where the implication of theory is inconsistent with observed economic data.
An example is the equity premium puzzle, which relates to the fact that over the last two hundred years, the risk premium of stocks over bonds has been around 5.5%, much larger than expected from theory. The equity premium puzzle was first documented by Mehra and Prescot (1985).
List of puzzles
- See also Category:Economic puzzles; Financial economics #Challenges and criticism.
- Equity premium puzzle
- Home bias in trade puzzle
- Equity home bias puzzle
- Consumption correlations puzzle
- Feldstein-Horioka puzzle
- Forward premium anomaly
- Real exchange rate puzzles
- Retirement-consumption puzzle
- Missing trade puzzle, also known as Border puzzle
gollark: Solar has problems, apparently, like high energy input to make and the obvious one of batteries.
gollark: Yes, we should be actually using those.
gollark: Space travel is HIGHLY energetically expensive so space oil mining is very bees.
gollark: Yes, we should be using fission and such, but silly people don't like it.
gollark: Oh yes, it has lots of hydrocarbons, doesn't it.
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