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Using a novel measure of industry exposure to government spending, we document predictable variation in cash flows and stock returns over political cycles. During Democratic presidencies, firms with high government exposure experience higher cash flows and stock returns, while the opposite...
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advantage in the final stage. We examine such momentum in conflict scenarios and investigate how valuable it must be to avoid a …, rent dissipation in the two-stage conflict is equal across party whether or not an individual obtains first-stage momentum … as useful conflict benchmarks, they dissipate additional expected contest rents. This additional rent-dissipative toll …
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