Frontaler Blick auf das D4 Gebäude.

Brown Bag Seminar - Maurizio Montone

16/04/2018

The next Brown Bag Seminar is scheduled for Monday, April 16th, 2018.

Our speaker will be

Maurizio Montone

(Erasmus School of Economics and Tinbergen Institute).

The talk will take place at 12:00-13:00 in seminar room D4.0.019.

He will give a talk on

"Does the U.S. President affect the stock market?".

Abstract: I develop an asset pricing model with asymmetric information and short-sales constraints, in which investor beliefs are tied to political outcomes. Consistent with the model's predictions, I find that when sentiment and disagreement over the U.S. President's job are high, subsequent stock returns are low. I also find that the difference in returns between Democratic and Republican administrations, known as the "presidential puzzle'' (Santa-Clara and Valkanov, 2003), is actually driven by political disagreement. Overall, the results support the view that political opinions matter for asset prices.

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