This paper studies the relationship between asset growth and idiosyncratic stock return volatility. Empirically, in the cross-section, firms' idiosyncratic return volatility has a V-shaped relationship with their asset growth rate. In the time series, dispersion across firms in asset growth...

We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on economic activity and welfare. In the first part of the paper, the GARCH-SVARmodel is applied to measure empirically the effect of the conditional exogenous exchange rate...