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OECD Economic Studies

OECD Economic Studies is the twice-yearly journal of the OECD Economics Department. It features articles in the area of applied macroeconomics and statistical analysis, generally with an international or cross-country dimension. Articles are derived from work of the Organization’s intergovernmental committees, including areas of work outside the Economics Department’s focus. Now published as a part of the OECD Journal.

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Explaining risk premia on bonds and equities

Between 2002 and early 2005 risk premia for a number of asset classes across broad geographical areas not only fell substantially but also tended to move more closely together than they had done historically. This raises the question to what extent this apparent reduced investor discrimination across asset classes went beyond what can be accounted for by market-specific developments. In particular, the reduced discrimination among asset classes could suggest that factors other than market- or country-specific events have played a role in narrowing risk premia.

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