Re: Top 10 Economic Puzzles

[Alex Tabarrok]

In no particular order

1) The Equity Premium Puzzle - or why are the returns on stocks so high
relative to bonds.  We are close to solving this in that we have about
three good answers now but no test to say which is correct.

2)  Why did productivity growth slowdown in the 1970's?  No really
convincing answers as far as I can tell.

3)  Why are exchange rates so volatile relative to fundamentals?  Many
explanations but none entirely satisfactory in my view.


Alex
-- 
Dr. Alexander Tabarrok
Vice President and Director of Research
The Independent Institute
100 Swan Way
Oakland, CA, 94621-1428
Tel. 510-632-1366, FAX: 510-568-6040
Email: [EMAIL PROTECTED]