As part of the Joint webinar series organised by the Department of International Economics and the CEPR, we are pleased to invite you to an online public talk by the Professors Anusha Chari, Andrew Greenland and Peter Schott . They will present their paper
Aggregate and Firm-Level Stock Returns During Pandemics, in Real-Time
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Abstract: We exploit unexpected changes in the trajectory of pandemics to quantify their effects on aggregate and firm-level stock returns. We find that an unanticipated doubling of predicted infections during the Covid-19 and SARS outbreaks forecasts aggregate equity market value declines of 4% to 11%. Firm returns are sensitive to this information even after accounting for their co-movement with the market, and vary widely both within and across sectors. Our results imply a decline in returns' reaction to new infections as the trajectory of the pandemic becomes clearer.
Covid Economics, Vetted and Real-Time Papers, from CEPR, brings together formal investigations on the economic issues emanating from the Covid outbreak, based on explicit theory and/or empirical evidence, to improve the knowledge base.
Founder: Beatrice Weder di Mauro, President of CEPR | Editor: Charles Wyplosz, Graduate Institute Geneva and CEPR.