This study explains the role of economic uncertainty as a bridge between business cycles and investors' herding behavior. Starting with a conventional stochastic differential equation representing the evolution of stock returns, we provide a simple theoretical model and empirically demonstrate...

"The living standards and scale of development around the world are vastly unequal. One notable observation is that much of the poverty-stricken area is located between the tropics of Cancer and Capricorn. By contrast, affluent nations are situated in more temperate zones. Such a phenomenon...