How do markets react to (un)expected fundamental value shocks? An experimental analysis

How do Markets React to Fundamental Shocks? An Experimental Analysis on Underreaction and Momentum

We perform a market experiment to investigate how average transaction prices react to the arrival of new information. Following a positive shock in fundamental value, prices underreact strongly; following negative shocks we find evidence of a much less pronounced underreaction. After the shock, prices in both situations slowly drift towards the new fundamental value, leading to a characteristic...

How do stock prices respond to fundamental shocks?

We estimate various SVAR models for the US in order to assess the importance of fundamental shocks in explaining stock price movements. The results show that models using real activity variables place more weight on fundamental shocks than models using dividends or earnings. However, according to all models fundamental shocks became substantially less important during the period 1982-2002 if co...

How ( Not ) to React to Experimental Philosophy

In this paper, I am going to offer a reconstruction of a challenge to intuition-based armchair philosophy that has been put forward by experimental philosophers of a restrictionist stripe, which I will call the 'master argument'. I will then discuss a number of popular objections to this argument and explain why they either fail to cast doubt on its first, empirical premise or do not go deep en...

How Do Agricultural Subsectors Respond to Productivity Shocks? Evidence from a Bayesian DSGE Model in Iran

Understanding the dynamics of productivity shocks is instrumental if we are to identify the sources of economic growth. This paper, investigates dynamic effects of positives productivity shocks to agricultural subsectors during the period from 1991-2015, by disaggregating agricultural sector in Iran into four key subsectors (crops, livestock, fishing and forestry) through an estimated DSGE mode...

How Do Households Respond to Income Shocks