Steven Davis, 22 April 2020

Stock market volatility in the early phase of the pandemic was largely driven by media reports of its likely extent and effect.  In more recent weeks the reaction has been much more a response to policy measures.
Steven Davis is coauthor of a paper on stock market reactions in issue one of CEPR's new Covid Economics Review.  You can download the paper here

Steven Davis, 22 April 2020

Steven Davis, co-author of 'The unprecedented stock market reaction to Covid-19', a paper in issue 1 of CEPR's new Covid Economics Review, says that the pandemic is having an effect on the US stock markets unlike anything we've ever seen before.
Download his paper here

Steven Davis, 22 March 2020

No previous infectious disease outbreak, including the Spanish flu, has impacted the stock market as powerfully as the Covid-19 pandemic. Steven Davis (University of Chicago) and his co-authors use text-based analysis of newspaper reports back to 1900 to track stock market volatility. They also argue that policy responses to the Covid-19 pandemic provide the most compelling explanation for its unprecedented stock market impact.

Manapol Ekkayokkaya, Suppasit Jirajaroenying, Christian Wolff, 09 January 2019

Retail investors are generally considered to be uninformed noise traders, but a recent literature suggests that such investors accumulate novel information about smaller stocks. Using new data from Thailand, this column argues that retail investors systematically outperform institutions, especially domestic institutions. In addition, retail investors have a comparative advantage in executing trades of small stocks. 

José Albuquerque de Sousa, Thorsten Beck, Peter A.G. van Bergeijk, Mathijs van Dijk, 17 November 2016

Well-developed and efficient financial markets are important contributors to the economic growth of developing economies. Unfortunately, many low- and middle-income countries lack liquid public capital markets. This column explores the performance of stock exchanges opened since 1975 across a sample of countries. A minimum number of listings and turnover in the first five years appear to be necessary conditions for success over the first two decades. Developing countries considering opening a stock exchange should ensure that there is sufficient interest from firms and investors.


CEPR Policy Research