Experimental research in psychology has found a strong negative association between traffic congestion and stress levels of commuters. Here, we investigate the consequences of morning traffic congestion on stock returns. Using traffic data and stock market returns from New York City and London,...

There are numerous empirical and theoretical studies that show that stock returns are affected by implementations of monetary policy. But, as mentioned in Bernanke and Kuttner (2005), very few studies tackle the question of why the stock market reacts to monetary policy. Romer and Romer (2000)...

This article investigates whether the Federal Reserve's (Fed's) private Gross Domestic Product (GDP) growth forecasts, as reported in the Greenbook of the Fed, contain information about future real and excess stock returns. I implement long-horizon regressions to analyse the predictive power of...

This paper investigates the factors that affect the covariance between the federal funds rate and stock returns. I estimate a VAR system and implement covariance decomposition analysis. Most of the covariance between the federal funds rate and stock returns is affected by changes in stock market...