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Do Bubbles Lead to Overinvestment? : A Revealed Preference Approach

Chirinko, Robert S. - 2011

spending – combined with investment theory – to estimate the discount rates used by managers. The standard story predicts that … between 15.1% and 45.2% too much capital. These estimates suggest that, even before they burst, bubbles adversely affect …

Persistent link: https://www.econbiz.de/10013123799

Was Bernanke Right? Targeting Asset Prices May Not Be a Good Idea After All

Assenza, Tiziana - 2013

Should the central bank prevent 'excessive' asset price dynamics or should it wait until the boom spontaneously turns into a crash and intervene only afterwards? The debate over this issue goes back at least to the exchange between Bernanke-Gertler (BG) and Cecchetti but has not settled yet. In...

Persistent link: https://www.econbiz.de/10013092104

Monetary Policy Through Production Networks : Evidence from the Stock Market

Ozdagli, Ali - 2017

Monetary policy shocks have a large impact on aggregate stock market returns in narrow event windows around press releases by the Federal Open Market Committee. We use spatial autoregressions to decompose the overall effect of monetary policy shocks into a direct (demand) effect and an indirect...

Persistent link: https://www.econbiz.de/10012953959

Are Stock and Housing Returns Complements or Substitutes? Evidence from OECD Countries

Caporale, Guglielmo Maria - 2013

In this paper we use a representative consumer model to analyse the equilibrium relation between the transitory deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for both stock returns and housing returns. The evidence...

Persistent link: https://www.econbiz.de/10013092228

Leveraged Bubbles

Jordà, Òscar - 2015

What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 … countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while … others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit …

Persistent link: https://www.econbiz.de/10013014986

Networks of Volatility Spillovers Among Stock Markets

Baumohl, Eduard - 2017

In our network analysis of 40 developed, emerging and frontier stock markets during 2006–2014, we describe and model volatility spillovers during global financial crisis and tranquil periods. The resulting market interconnectedness is depicted by fitting a spatial model incorporating several...

Persistent link: https://www.econbiz.de/10012954361

Gender Quotas : Challenging the Boards, Performance, and the Stock Market

Ferrari, Giulia - 2016

In 2011, Italy introduced gender quotas for boards of directors of companies listed on its stock market. Comparing before and after the reform within firms, we find that quotas are associated with a higher share of female board directors, higher levels of education of board members, and a lower...

Persistent link: https://www.econbiz.de/10012979668

Oil Prices and GCC Stock Markets : New Evidence from Smooth Transition Models

Ben Cheikh, Nidhaleddine - 2018

Our paper examines the effect of oil price changes on Gulf Cooperation Council (GCC) stock markets using nonlinear smooth transition regression (STR) models. Contrary to conventional wisdom, our empirical results reveal that GCC stock markets do not have similar sensitivities to oil price...

Persistent link: https://www.econbiz.de/10012914946

When the Market Drives you Crazy : Stock Market Returns and Fatal Car Accidents

Giulietti, Corrado - 2018

The stock market influences some of the most fundamental economic decisions of investors, such as consumption, saving, and labor supply, through the financial wealth channel. This pa-per provides evidence that daily fluctuations in the stock market have important - and hitherto neglected -...

Persistent link: https://www.econbiz.de/10012910618

The Changing Macroeconomic Response to Stock Market Volatility Shocks

Beetsma, Roel - 2011

There is substantial consensus in the literature that positive uncertainty shocks predict a slowdown of economic activity. However, using U.S. data since 1950 we show that the macroeconomic response pattern to stock market volatility shocks has changed substantially over time. The negative...

Persistent link: https://www.econbiz.de/10013117909