Mosebach, Michael; Najand, Mohammad - In: Journal of Financial Research 22 (1999) 3, pp. 317-29
We examine the long-run equilibrium relation between the net flow of funds into equity mutual funds and the S&P 500 index. Applying the Engle and Granger error correction methodology followed by a state space procedure, we find that the levels of the stock market are influenced by the net flow...