Stock market consequences of macro economic fundamentals

Muhammad Ayub Mehar

MPRA Paper from University Library of Munich, Germany

Abstract: It is concluded in the study that the Valuation Ratio will be independent from the Equities if equity-elasticity is equal to one. However, Market Capitalization depends on the investment in equities and the market liquidity. The model has been tested in the context of Pakistan and the Monetary and Fiscal policies have been found as the significant determinants of the Market Capitalization.

Keywords: Co-integration; Granger’s Causality; Liquidity-Elasticity; Equity-Elasticity; Market Capitalization; Simulation (search for similar items in EconPapers)
JEL-codes: E52 E63 G12 G18 (search for similar items in EconPapers)
Date: 2000, Revised 2001
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Citations: View citations in EconPapers (1)

Published in Conference Proceedings, Montreal: McGill University, (Canadian Economic Association) 2001.1(2002): pp. 1-17

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:442

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