The significance of uncertainty in policies related to economic decisions is higher than ever
before in today's interconnected world. This study contributes to existing research by …

Our paper reexamines whether 29 variables from 26 papers published after, as well as the
original 17 variables, were useful in predicting the equity premium in-sample and out-of …

Abstract Models of political risk predict that increases in political uncertainty cause stock
prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political …

Our article comprehensively reexamines the performance of variables that have been
suggested by the academic literature to be good predictors of the equity premium. We find …

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 Democratic or Republican. In equilibrium …

The surge in public debt triggered by the financial crisis has raised uncertainty about future
tax pressure and economic activity. We examine the asset pricing effects of fiscal policies in …

Economic policy uncertainty (EPU) increases the cost of raising equity capital, especially
when the economy is weak. A one standard deviation increase in the EPU index developed …

Elevated levels of government debt raise concerns about their effects on long-term growth
prospects. Using the cross-section of US stock returns, we show that (i) high-R&D firms are …

We develop a dynamic model with time variation in external equity financing costs and show
that variation in these costs is important for the model to quantitatively capture the joint …

This study examines the role of technology spillover in the negative relationship between
corporate investment and subsequent stock returns. Technology spillover is a well …