in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior … uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low … market returns, and accompanied by high stock prices. These as well as other predictions are supported empirically. Stock …

in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior … uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low … market returns, and accompanied by high stock prices. These as well as other predictions are supported empirically. Stock …

—the party promising more redistribution. The model predicts higher average stock market returns under Democratic presidencies …

---the party promising more redistribution. The model predicts higher average stock market returns under Democratic presidencies …

higher average stock market returns under Democratic than Republican presidencies, explaining the well-known "presidential …