This paper builds a government policy choice model in a general equilibrium setting in which households' health status responds to a stricter policy on the pandemic. By assuming an exogenous policy decision date, the model implies the government should maintain the current policy until the...

This paper builds a government policy choice model in a general equilibrium setting in which households' health status responds to a stricter policy on the pandemic. By assuming an exogenous policy decision date, the model implies the government should maintain the current policy until the...

We develop a general equilibrium model incorporating households with consumption habits and a government to analyze how policy uncertainty affects household consumption and stock prices. The model implies that the government should avoid policy changes if the policy uncertainty is high or an...

This paper employs the ZCAPM asset pricing model of Liu, Kolari, and Huang (2018) to show that momentum returns are highly related to market risk arising from return dispersion (RD). Cross-sectional tests show that momentum risk loadings and RD risk loadings are similarly priced in momentum...

We examine the impact of Chinese firms' perception of economic policy uncertainty on their decision to purchase D&O coverage, using textual data from 36, 849 annual reports of publicly listed companies. Our results demonstrate that increased perceptions of economic policy uncertainty positively...