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On the Peculiar Distribution of the U.S. Stock Indeces' Digits

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Author Info
Eduardo Ley (Resources for the Future)

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Abstract

Recent research has focused on studying the patterns in the digits of closely followed stock market indeces (see, \eg, Ley and Varian (1994) and Koedijk and Stork (1994)). In this paper, we find that the series of one-day returns on the Dow-Jones Industrial Average Index (\djia) and the Standard and Poor's Index (\sp) reasonably agrees with Benford's law and, therefore, belongs to the family of {\it anomalous\/} or {\it outlaw\/} numbers.

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Paper provided by EconWPA in its series Finance with number 9503002.

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Date of creation: 21 Mar 1995
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Handle: RePEc:wpa:wuwpfi:9503002

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G - Financial Economics

References listed on IDEAS
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  1. Koedijk, Kees G. & Stork, Philip A., 1994. "Should we care? psychological barriers in stock markets," Economics Letters, Elsevier, vol. 44(4), pages 427-432, April. [Downloadable!] (restricted)
  2. Leamer, Edward E., 1983. "Model choice and specification analysis," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 5, pages 285-330 Elsevier. [Downloadable!] (restricted)
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This page was last updated on 2009-12-13.


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