The purpose of this letter is to estimate the US social discount rate, the appropriate discount rate for public capital budgets. There are two methods. One assumes that public investment displaces private consumption, and the discount rate is labelled the social rate of time preference (SRTP)....

Theoretically the expected return on any financial asset need not equal the average of the actual return. In this paper, the expected equity premium is estimated based on two fundamentals: the Gordon dividend model with constant growth, and duration analysis. The result is that the ex ante, or...

There is a puzzle in financial economics, called risk-free rate puzzle, named after Weil (1989). This puzzle consists of the observation that the risk-free rate is too low to be explained by actual consumption behaviour. Building upon previous research, and applying the concept of minimum...