R.Mehra and E.C.Prescott,The equity premium 149 15 9 -15 1889 1907 1925 1942 1960 1878 Fig.2.Growth rate of real per capita consumption,1889-1978(percent). 55 -33 -55- 1889 1987 1925 1942 196e 1978 Fig.3.Real annual return on a relatively riskless security,1889-1978(percent)