Announcing a large fiscal stimulus may signal the government’s pessimism about the severity of a recession to the private sector, impairing the stabilizing effects of the policy. Using a theoretical model, we show that these signaling effects occur when the stimulus exceeds expectations and...

The present paper tries to analyze the macroeconomic determinants of stock returns in a relative context using monthly data from 1999 to 2013 for a panel of emerging economies, India and China. Using modern panel data time series techniques, the paper tries to examine the relative impact of...