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How Was the World That Recovered from the Crises of the Third

question 13

Essay

How was the world that recovered from the crises of the third through the seventh centuries a world of civilization?


Definitions:

Equity Premium Puzzle

The phenomenon that observed historical returns on stocks over government bonds are significantly higher than can be explained by conventional economic theory.

Fama and French

Two renowned economists who developed the three-factor model explaining stock returns on the basis of market risk, size, and value.

Dividend-Discount Model

A method for determining the value of a stock by using predicted dividends and discounting them back to present value.

Mehra and Prescott

Two economists known for their work in the economics field, particularly for the Equity Premium Puzzle which questions why stocks have historically outperformed safer assets by such a wide margin.

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