This paper studies the asset pricing implications of industrial pollution. A long‐short portfolio
constructed from firms with high versus low toxic emission intensity within an industry …

This survey starts by reviewing the literature investigating whether political connectedness of
companies creates wealth for their shareholders. It then moves on to examine whether there …

We empirically analyze the pricing of political uncertainty, guided by a theoretical model of
government policy choice. To isolate political uncertainty, we exploit its variation around …

Using the news-based measure of Baker et al.[Baker SR, Bloom N, Davis SJ (2013)
Measuring economic policy uncertainty. Working paper, Stanford University, Stanford, CA] to …

We develop a general equilibrium model of government policy choice in which stock prices
respond to political news. The model implies that political uncertainty commands a risk …

We analyze how changes in government policy affect stock prices. Our general equilibrium
model features uncertainty about government policy and a government whose decisions …

We review the debate surrounding the macroeconomic effects of deficit reduction policies
(austerity). The discussion about" austerity" in general has distracted commentators and …

We investigate, in a theoretical framework, the joint role played by investors' attention to
news and learning uncertainty in determining asset prices. The model provides two main …

Using a novel measure of industry exposure to government spending, we show predictable
variation in cash flows and stock returns over political cycles. During Democratic …

This review revisits the literature on fiscal capacity using modern tools from asset pricing. We
find that properly accounting for aggregate risk substantially reduces fiscal capacity. In this …