According to the Austrian Business Cycle Theory, malinvestment is the key concept for understanding the transmission mechanism of the business cycle and the main determinant of its length and amplitude especially during a recession. This paper attempts to construct a malinvestment index to...

Exchange-Traded Funds (ETFs) have become one of the most popular passive investment instruments since they bring together the advantages of stocks and mutual funds. As passive investors are more risk averse and sensitive to possible adverse market developments, ETF's fund flows can provide...