Political Finance
Using market prices to measure how political events and populist electoral shifts are priced into equities, volatility, and cross-country asset returns.
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2 min read
Using market prices to measure how political events and populist electoral shifts are priced into equities, volatility, and cross-country asset returns.
We show how the stock market's assessment of post-election winning probabilities can be backed out from stock prices, using the sensitivity of stocks to changes in winning …