Similar Search Results

Do stock price bubbles influence corporate investment?

Gilchrist, Simon; Himmelberg, Charles P.; Huberman, Gur - 2004

Building on recent developments in behavioral asset pricing, we develop a model in which an increase in the dispersion of investor beliefs under short-selling constraints predicts a bubble, or a rise in a stock's price above its fundamental value. Our model predicts that managers respond to...

Persistent link: https://www.econbiz.de/10010283384

Preferences and biases in educational choices and labor market expectations: Shrinking the black box of gender

Reuben, Ernesto; Wiswall, Matthew; Zafar, Basit - 2013

competitiveness and risk, this paper investigates whether these behavioral biases and preferences explain gender differences in … college major choices and expected future earnings. In a sample of high-ability undergraduates, we find that competitiveness … in overconfidence and competitiveness explain about 18 percent of the gender gap in earnings expectations. These …

Persistent link: https://www.econbiz.de/10010333639

Inventory dynamics and business cycles: What has changed?

McCarthy, Jonathan; Zakrajések, Egon - 2002

By historical standards, the U.S. economy has experienced a period of remarkable stability since the mid-1980s. One explanation attributes the diminished variability of economic activity to information-technology-led improvements in inventory management. Our results, however, indicate that the...

Persistent link: https://www.econbiz.de/10010283396

Investment shocks and business cycles

Justiniano, Alejandro; Primiceri, Giorgio E.; … - 2008

Shocks to the marginal efficiency of investment are the most important drivers of business cycle fluctuations in U.S. output and hours. Moreover, like a textbook demand shock, these disturbances drive prices higher in expansions. We reach these conclusions by estimating a dynamic stochastic...

Persistent link: https://www.econbiz.de/10010283518

Investment shocks and the relative price of investment

Justiniano, Alejandro; Primiceri, Giorgio E.; … - 2009

We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the relative price of investment. The second shock affects...

Persistent link: https://www.econbiz.de/10010283523

What drives housing prices?

Kahn, James A. - 2008

This paper develops a growth model with land, housing services, and other goods that is capable of explaining a substantial portion of the movements in housing prices over the past forty years. Under certainty, the model exhibits a balanced aggregate growth, but with underlying sectoral change....

Persistent link: https://www.econbiz.de/10010283524

Interest rates and the market for new light vehicles

Copeland, Adam; Hall, George J.; Maccini, Louis J. - 2015

We study the impact of interest rate changes on both the demand and supply of new light vehicles in an environment where consumers and manufacturers face their own interest rates. An increase in the consumers' interest rate raises their cost of financing and thus lowers the demand for new...

Persistent link: https://www.econbiz.de/10011460625

Estimating dynamic panel models: Backing out the Nickell bias

Hausman, Jerry A.; Pinkovskiy, Maxim L. - 2017

We propose a novel estimator for the dynamic panel model, which solves the failure of strict exogeneity by calculating the bias in the first-order conditions as a function of the autoregressive parameter and solving the resulting equation. We show that this estimator performs well as compared...

Persistent link: https://www.econbiz.de/10011942769

Characteristic-sorted portfolios: Estimation and inference

Cattaneo, Matias D.; Crump, Richard K.; Farrell, Max H.; … - 2016

Portfolio sorting is ubiquitous in the empirical finance literature, where it has been widely used to identify pricing anomalies in different asset classes. Despite the popularity of portfolio sorting, little attention has been paid to the statistical properties of the procedure or to the...

Persistent link: https://www.econbiz.de/10011538018

Commodity prices, commodity currencies, and global economic developments

Groen, Jan J. J.; Pesenti, Paolo A. - 2009

In this paper, we seek to produce forecasts of commodity price movements that can systematically improve on naïve statistical benchmarks. We revisit how well changes in commodity currencies perform as potential efficient predictors of commodity prices, a view emphasized in the recent...

Persistent link: https://www.econbiz.de/10010287027