Papers & Opinions

Empirics | Financial markets

Partisan Return Gap

Paper

Posted on 19 July 2021

By Jinfei Sheng

We document sharp differences in stock price responses to COVID-19-related news between public firms headquartered in blue counties (dominated by Democratic voters) and those in red counties (dominated by Republican...
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Empirics | Financial markets | Theory

Political Cycles and Stock Returns

Paper

Posted on 18 July 2021

By Lubos Pastor

We develop a model of political cycles driven by time-varying risk aversion. Agents choose to work in the public or private sector and to vote Democrat or Republican. In equilibrium,...
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