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The article illustrates how the integration of modern theory of finance and stochastic dynamic macroeconomic analysis provides a deeper understanding of the link between asset prices and consumption. It shows that this approach gives only a partial explanation for recent trends in US...
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Although there are numerous studies examining takeover effects, there are very few that focus on emerging stock markets … firms when applied different methods. This research features a study of takeover effects on one such emerging market: the … takeover were investigated using more advanced methodologies and metrics. Their long-term bid period returns were measured by …
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This paper presents a simple new method for estimating the size of wealth effects on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as habits in the asset pricing literature) to distinguish between short-run and long-run...
Persistent link: https://www.econbiz.de/10010986368
Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in which housing price changes work as a "wealth effect". In such models, windfall gains in housing always lead to positive changes in consumption. However, this might be a...
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