Speculative Growth and Overreaction to Technology Shocks
نویسندگان
چکیده
منابع مشابه
Growth Opportunities and Technology Shocks∗
The market value of a firm can be decomposed into two fundamental parts: the value of assets in place and the value of future growth opportunities. We propose a theoreticallymotivated procedure for measuring heterogeneity in growth opportunities across firms. We identify firms with high growth opportunities based on the covariance of their stock returns with the investment-specific productivity...
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We explore the impact of investment-specific technology (IST) shocks on the crosssection of stock returns. IST shocks reflect technological advances embodied in new capital goods. Using a structural model, we show that IST shocks have a differential effect on the two fundamental components of firm value, the value of assets in place and the value of growth opportunities. This differential sensi...
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When risks threaten, cognitivemechanismsbias people toward actionor inaction. Fearsome risks are highly available. The availability bias tells us that this leads people to overestimate their frequency. Therefore, they also overreact to curtail the likelihood or consequences of such risks. More generally, fear can paralyze efforts to think clearly about risks. We draw on a range of environmental...
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Adding variable capital utilisation to a dynamic new Keynesian framework gives a model which can produce realistic responses to both technology and monetary shocks. This requires the assumption of a much lower level of nominal rigidity than is usual.
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GDP growth typically vibrates with modest variation around a mean of a few percent per year, but periodically, mean growth undergoes a major shift, vibrating thereafter around a new level. I present a transmission mechanism with nonlinear dynamics that endogenously translates random sectoral shocks into just this sort of behavior, creating what might be thought of as multiple growth states. Sma...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1245703