Gandhi, Priyank; Lustig, Hanno; Plazzi, Alberto - 2016 - This version: June 11, 2016
exposures. In a bailout-augmented asset pricing model with rare disasters, country characteristics that inform the likelihood of … a bailout should predict stock returns. We find greater financial pricing anomalies for the largest banks in developed … pricing discrepancy widens in anticipation of large stock market and GDP declines, as the bailout-augmented asset pricing …