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Cited by 1,061

The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.

The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle?

Open access
Moskowitz, Tobias J, Vissing-Jørgensen, Annette·2002·American Economic Review
DOI 10.1257/00028280260344452
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Abstract

We document the return to investing in U.S. nonpublicly traded equity. Entrepreneurial investment is extremely concentrated, yet despite its poor diversification, we find that the returns to private equity are no higher than the returns to public equity. Given the large public equity premium, it is puzzling why households willingly invest substantial amounts in a single privately held firm with a seemingly far worse risk-return trade-off. We briefly discuss how large nonpecuniary benefits, a preference for skewness, or overestimates of the probability of survival could potentially explain investment in private equity despite these findings.

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Metadata

Authors
Moskowitz, T. J., & Vissing-Jørgensen, A.
Venue
American Economic Review
Publisher
American Economic Association
Published
2002-08-01
Volume
92
Issue
4
Pages
745-778
ISSN
0002-8282 (ISSN-L)
DOI
10.1257/00028280260344452
OpenAlex
W3124890702
Cited by
1,061
References
2
FWCI
101.71
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle? https://app.cochat.ai/papers/10.1257/00028280260344452
The paper
Moskowitz, T. J., & Vissing-Jørgensen, A. (2002). The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle? American Economic Review. https://doi.org/10.1257/00028280260344452

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.