Sunday, August 24, 2014

Update on Stock Prices & Political Activity


Readers may recall we recently reviewed a draft paper on the effects of political activity on the stock price of British firms. One of the authors, David Primo of U. Rochester, dropped a gracious note to your blogger with news that there‚Äôs now an updated version of the paper on-line.  The paper accounts for some of my concerns about method (see esp. p. 18), and Prof. Primo notes that resolving my point about selection bias still leaves most of their main results intact.  I continue to differ with the authors on the interpretation of their results.  But at least now we are closer to having results we agree on before we fight about what they mean.

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