Akdeniz, L.Dechert, W. D.2015-07-282015-07-282012-02-271365-1005http://hdl.handle.net/11693/12231In this paper we use a simple model with a single Cobb–Douglas firm and a consumer with a CRRA utility function to show the difference between the equity premia in the production-based Brock model and the consumption-based Lucas model. With this simple example we show that the equity premium in the production-based model exceeds that of the consumption-based model with probability 1.EnglishComputational economicsProjection methodsAsset pricing models, stochastic growth models.Article10.1017/S1365100511000708