Stock Market Stimulus

A-Tier
Journal: The Review of Financial Studies
Year: 2023
Volume: 36
Issue: 10
Pages: 4082-4112

Authors (4)

Robin Greenwood (not in RePEc) Toomas Laarits (not in RePEc) Jeffrey Wurgler (New York University (NYU)) Tarun Ramadorai (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the stock market effects of the arrival of the three rounds of “stimulus checks” to U.S. taxpayers and the single round of direct payments to Hong Kong citizens. The first two rounds of U.S. checks appear to have increased retail buying and share prices of retail-dominated portfolios. The Hong Kong payments increased overall turnover and share prices on the Hong Kong Stock Exchange. We cannot rule out that these price effects were permanent. The findings raise novel questions about the role of fiscal stimulus in the stock market.Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Technical Details

RePEc Handle
repec:oup:rfinst:v:36:y:2023:i:10:p:4082-4112.
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29