Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

Stock Prices, Lockdowns, and Economic Activity in the Time of Coronavirus

Steven J. DAVIS, Dingqian LIU, Xuguang Simon SHENG
Stock prices and workplace mobility trace out striking clockwise paths in daily data from mid February to late May 2020. Global stock prices fell 30 percent from 17 February to 12 March, before mobility declined. Over the next 11 days, stocks fell another 10 percentage points as mobility dropped 40 ...
Keywords: stock prices, lockdown policies, market shutdowns, Coronavirus, COVID-19, workplace mobility, China
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Stock Market Overvaluation, Moon Shots, and Corporate Innovation

David HIRSHLEIFER, Siew Hong TEOH, Ming DONG
We test how market overvaluation affects corporate innovation. Estimated stock overvaluation is very strongly associated with measures of innovative inventiveness (novelty, originality, and scope), as well as R&D and innovative output (patent and citation counts), and these relationships are hig...
Keywords: stock market misvaluation, innovation, R&D, patents, behavioral finance, market efficiency
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2022

Stock Market Milestones and Mortgage Demand: Evidence from US

Sumit AGARWAL, Changcheng SONG, Sergio CORREIA, Bernardo MORAIS
We document that after the stock market index reaches a milestone number (round 1000), more households apply mortgage for home purchase, and they are more likely to apply mortgage for second homes compared to non-milestone historical maxima. The loan amount also increases after the milestone event. ...
Keywords: Stock market wealth, Rounding number bias, mortgage
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Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

Still the World’s Safe Haven? Redesigning the U.S. Treasury Market After the COVID-19 Crisis

Darrell DUFFIE
I review the functionality of the secondary market for U.S. Treasuries in March 2020, when the Covid-19 crisis triggered investor flows that overwhelmed intermediaries. Although the Fed was able to largely restore market liquidity through its unprecedented rate of Treasury purchases and other action...
Keywords: COVID-19, Pandemic, US Treasury Market
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Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

Still the World's Safe Haven? Redesigning the U.S. Treasury Market After the COVID19 Crisis

Darrell DUFFIE
I review the functionality of the secondary market for U.S. Treasuries in March 2020, when the Covid-19 crisis triggered investor flows that overwhelmed intermediaries. Although the Fed was able to largely restore market liquidity through its unprecedented rate of Treasury purchases and other action...
Keywords: COVID-19, Pandemic, market liquidity, Treasury market
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