Abstract
We find evidence of a pronounced threshold-type asymmetry in the relation between stock returns and real economic activity. Negative stock returns are followed by sharp decreases in industrial production growth rates, while only slight increases in real activity follow positive stock returns. These findings are consistent with the recent empirical macroeconomics literature on business cycle asymmetry.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
