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Full-Text Articles in Economic Theory
Do Global Pandemics Matter For Stock Prices? Lessons From The 1918 Spanish Flu, Marco Del Angel, Caroline Fohlin, Marc D. Weidenmier
Do Global Pandemics Matter For Stock Prices? Lessons From The 1918 Spanish Flu, Marco Del Angel, Caroline Fohlin, Marc D. Weidenmier
Business Faculty Articles and Research
We study the impact of the 1918 Spanish Flu on U.S. stock prices. We use the death rate to control for the impact of the global pandemic and war news reported in the New York Times to capture the positive effects of the end of World War I on stock prices. Using a new weekly hand collected NYSE stock price index, we show that there is a -.73 correlation between the aggregate stock market and the death rate. Furthermore, vector autoregressions demonstrate that the death rate can explain up to 24 percent of the forecast error variance in the aggregate …
Citizen-Consumers Wanted: Revitalizing The American Dream In The Face Of Economic Recessions, 1981-2012, Gokcen Coskuner-Balli
Citizen-Consumers Wanted: Revitalizing The American Dream In The Face Of Economic Recessions, 1981-2012, Gokcen Coskuner-Balli
Business Faculty Articles and Research
This article brings sociological theory of governmentality to bear on a longitudinal analysis of American presidential speeches to theorize the formation of the citizen-consumer subject. The 40-year historical analysis which expands through four economic recessions and the presidential terms of Ronald Reagan, William J. Clinton, George W. Bush, and Barack Hussein Obama, illustrates the ways in which the national mythology of American Dream myth has been linked to the political ideology of the state to create the citizen-consumer subject in the United States. The quantitative and qualitative analysis of the data demonstrates first, the consistent emphasis on responsibility as a …
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse, Asaf Bernstein, Eric Hughson, Marc Weidenmier
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse, Asaf Bernstein, Eric Hughson, Marc Weidenmier
Business Faculty Articles and Research
We examine the effect of the establishment of the New York Stock Exchange (NYSE) clearinghouse in 1892 on counterparty risk using a novel historical experiment. During this period, the NYSE stocks were dual-listed on the Consolidated Stock Exchange (CSE), which already had a clearinghouse. Using identical securities on the CSE as a control, we find that the introduction of multilateral net settlement through a clearinghouse substantially reduced volatility of NYSE returns caused by settlement risk and increased asset values. Our results indicate that a clearinghouse can improve market stability and value through a reduction in network contagion and counterparty risk.