A Re-examination of the Benefits of Emerging Markets
Philippe Jorion,University of California, Irvine
William Goetzmann, Yale University

The paper, “Global Stock Markets in the Twentieth Century,” attempts to determine when the high returns of US stocks in the twentieth century are due to a survivorship bias. The results show that the US equities had the highest real returns of all 39 countries examined over 1921 to 1996. The high US returns therefore appears to be the exception rather than the rule. (Accepted Spring 1998.)