Stock Market Stimulus

Robin Greenwood, Toomas Laarits and Jeffrey Wurgler

No 29827, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: E62 G0 G14 G38 G4 (search for similar items in EconPapers)
Date: 2022-03
New Economics Papers: this item is included in nep-fmk and nep-mac
Note: AP ME
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Citations: View citations in EconPapers (3)

Published as Robin Greenwood & Toomas Laarits & Jeffrey Wurgler & Tarun Ramadorai, 2023. "Stock Market Stimulus," The Review of Financial Studies, vol 36(10), pages 4082-4112.

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