Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

The Unprecedented Stock Market Reaction to COVID-19

Steven J. DAVIS, Scott R. BAKER, Nicholas A. BLOOM, Kyle KOST, Marco SAMMON, Tasaneeya VIRATYOSIN
No previous infectious disease outbreak, including the Spanish Flu, has affected the stock market as forcefully as the COVID-19 pandemic. In fact, previous pandemics left only mild traces on the U.S. stock market. We use text-based methods to develop these points with respect to large daily stock ma...
Keywords: COVID-19, Pandemic, stock market
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Senior Fellows/Fellows

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Senior Fellows/Fellows

The (Heterogenous) Economic Effects of Private Equity Buyouts

Steven J. DAVIS, John HALTIWANGER, Kyle HANDLEY, Ben LIPSIUS, Josh LERNER, Javier MIRANDA
We examine thousands of U.S. private equity (PE) buyouts from 1980 to 2013, a period that saw huge swings in credit market tightness and GDP growth. Our results show striking, systematic differences in the real-side effects of PE buyouts, depending on buyout type and external conditions. Employment ...
Keywords: private equity, buyouts
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Rising Policy Uncertainty

Steven J. DAVIS, Nicholas A. BLOOM, David E. ALTIG, Jose Maria BARRERO, Brent MEYER, Nicholas PARKER
I review evidence of rising policy uncertainty in the U.S. and global economies, drawing heavily on newspaper-based measures. Examples from countries around the world illustrate the role of political and policy developments as drivers of fluctuations in economic uncertainty. I also highlight the pro...
Keywords: Policy uncertainty, Trade Policy, Stock Market Volatility, Newspaper-Based Measures
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2019

Real Estate Booms and Misallocation of Capital in China

Laura LIU, Ting CHEN, Wei XIONG, Li-An ZHOU
This paper analyzes how real estate shocks affect corporate investment in China. In addition to the widely documented collateral channel, we also uncover two other channels: the speculation channel—rapidly rising commercial land prices induce manufacturing and service firms to buy more commercial ...
Keywords: Land prices, Collateral Channel, Speculation Channel, Crowding Out Channel, Misallocation of Capital
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2019

Super Debt Cities

Mathias HOFFMANN, Yi HUANG, Ye ZHANG
In response to the global financial crisis, the Chinese government launched a gigantic fiscal stimulus and the big four government-owned banks considerably expanded their lending. We show that this lending boom contributed significantly to the house-price boom across China since 2009. To identify th...
Keywords: lending boom, house-price boom, China, financial crisis
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