Restricted Participation in Equity Markets and Industry Cycles
Juan M. Morelli
This paper reviews how the rise in US households’ participation in fairness markets affects the transmission of macroeconomic shocks to the economy. I embed exiguous participation true into a Recent Keynesian framework for the US economy to overview the actual person and mixture results of increased participation. I catch three predominant results. First, participants are rather extra attentive to shocks than nonparticipants. Second, increased participation reduces the effectiveness of monetary protection. Third, sms lån på minuttet increased participation the economy turns into much less volatile. I inequity key predictions of my mannequin sms lån på minuttet contemporary micro-stage empirical evidence on the response of consumption to monetary protection shocks.
Keywords: Restricted Participation; Monetary Protection; Stock Market; Investment; Industry Cycle
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April 30, 2021