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Full-Text Articles in Social and Behavioral Sciences
An Examination Of The Stock Market’S Effect On Economic Inequality, Nicholas J. Golina
An Examination Of The Stock Market’S Effect On Economic Inequality, Nicholas J. Golina
Undergraduate Economic Review
The literature on economic inequality has shown that stock markets can negatively impact aggregate demand because it indicates a higher concentration of wealth in the hands of the top 10% as opposed to the middle class. The stock market could be one of the factors leading to increased inequality. This study contributes to the literature by analyzing stock markets in OECD countries. Building on Tsountas et al (2015), the results showed that stock markets can have a positive impact on inequality, but with weak economic significance. It is recommended that policymakers should focus on factors that more greatly impact inequality.
Impact Of Airplane Crashes On Firm's Credit Risk Under The Creditgrades Model, Alexandros Bougias
Impact Of Airplane Crashes On Firm's Credit Risk Under The Creditgrades Model, Alexandros Bougias
Undergraduate Economic Review
The paper examines the impact of airplane accidents with 40 or more fatalities, on airline's firm credit risk. The sample contains 20 airplane crashes for the period 2000-2017. The analysis proposes the CreditGrades model introduced by Finger et al. (2002) , which is an extension of the first passage time model of Black and Cox (1976). The study concludes that airplane accidents lead to a statistically significant increase in airline's Probability of Default. The results are both significant and robust under the t-Test and the non-parametric Wilcoxon Signed-rank test.
Are Volatility Expectations In Different Countries Interdependent? A Data-Driven Solution To Structural Var Identification For Implied Equity Volatility Indices, Timothy De Silva
Are Volatility Expectations In Different Countries Interdependent? A Data-Driven Solution To Structural Var Identification For Implied Equity Volatility Indices, Timothy De Silva
Undergraduate Economic Review
Over the past couple of decades, the number of volatility indices has increased rapidly. Although the dynamics of realized volatility spillover have been studied extensively, very few studies exist that examine the spillover between these implied volatility indices. By using DAG-based structural vector autoregression, this paper provides evidence that implied volatility spillover differs from realized volatility spillover. Through solving the well-known VAR identification problem for these indices, this paper finds that Asia, more specifically Hong Kong, plays a central role in implied volatility spillover during and after the 2008 financial crisis.