In this paper we investigate the link between optimal level of leverage and macroeconomic uncertainty. Using the model of firm’s value maximization, we show that as macroeconomic uncertainty increases, captured by an increase in the variability of industrial production or inflation, firms decrease their optimal levels of borrowing. We test this prediction on a panel of non–financial US firms dr...

background health is a complex phenomenon that can be studied from different approaches. despite a growing research in the areas of social determinants of health (sdh) and health equity, effects of macroeconomic policies on the social aspect of health are unknown in developing countries. this study aimed to determine the effect of macroeconomic policies on increasing of the social-health inequa...

Initial announcements of macroeconomic indicators are based on imprecise and incomplete information. Government statistical agencies routinely restate the initial estimates over the course of several subsequent years as more information becomes available. We find that simple accounting-based aggregates, such as earnings dispersion, can predict future restatements in macroeconomic estimates, inc...

this paper investigates the relationship between macroeconomic instability and private investment of the iranian economy. the study uses a trivariate var(2)-garch(1,1)-in-mean with diagonal bekk approach to proxied inflation and exchange rate uncertainties as the main indicators of macroeconomic instability. moreover, bounds testing approach to level relationship applied to investigate the long...

Th e powerful attraction of foreign direct investment (FDI) is particularly important for further development of tourism. Th e strategically focused attraction of FDI in tourism has a much higher signifi cance because of the multiple eff ects in relation to other segments of the economy. In this context, it is necessary to highlight the investment engagement and the presence of globally branded...

It is perhaps stating the obvious to say that an important part of the macroeconomic environment is monetary policy. The actions of central banks have material effects on financial markets and can shape macroeconomic outcomes. Indeed, over recent decades it became widely accepted that monetary policy was the primary macroeconomic stabilisation tool and that monetary policy could effectively man...

Numerous empirical studies have examined the relationship between macroeconomic variables and stock returns across different stock markets and time horizons by either outlining the influence of only domestic variables or a few global factors. The aim of this paper is to combine both global and domestic factors and extend this presumed relationship between stock returns and macroeconomic variabl...

The formation of macroeconomic policy is conceptualized as on-going process of interaction between private individuals and a centralized policymaker. This interaction is inherently strategic in nature and lends itself to a gametheoretical treatment. Starting from the basic principle of rational expectations, the analysis advances a theoretical perspective on the related concepts of macroeconomi...

To prevent their theories from becoming as unhinged as the Phillips curve, modern macroeconomic theorists conventionally build from microeconomic fundamentals. Recent empirical studies of macroeconomic phenomena that heavily use data from individual producers, exemplified by the work of Davis, Haltiwanger, and Schuh (1996), have convinced empirical macroeconomic practitioners they should do the...

This paper examines the effect of macroeconomic releases on stock market volatility through a Poisson-Gaussian-GARCH process with time varying jump intensity, which is allowed to respond to such information. It is found that the day of the announcement, per se, has little impact on jump intensities. Employment releases are an exception. However, when macroeconomic surprises are considered, infl...