The equity premium puzzle and inflation-protected securities

Avner Bar-Ilan, Irina Potashinski

Research output: Contribution to journalArticlepeer-review


We present data from six countries whose governments issued CPI-indexed bonds. We evaluate the equity risk premium where various bonds serve as the riskless asset. We find that the premium of equity relative to indexed bonds is large and the real return on bonds is low only during periods of disinflation.

Original languageEnglish
Pages (from-to)84-89
Number of pages6
JournalInvestment Management and Financial Innovations
Issue number1
StatePublished - 2010


  • Equity premium puzzle
  • Inflation-indexed debt
  • Risk-free rate puzzle

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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