Does budget deficit lower equity prices in USA?
AbstractThis paper investigates the relationship between budget deficits and stock prices, incorporating the effects of inflation and the demographic structure. The results show that while the proportion of population in their prime earning age has a positive effect, both budget deficits and inflation have a negative impact on stock prices.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 107 (2010)
Issue (Month): 2 (May)
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Web page: http://www.elsevier.com/locate/ecolet
Budget deficit Demographic structure Equity price;
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