In this paper, we argue that investor sentiment is a more direct determinant for asset pricing than information, thus we propose the Sentiment Efficient Markets Hypothesis (S-EMH), complementary to the traditional Efficient Market Hypothesis (EMH), to provide a powerful instrument to interpret...

Facing electoral uncertainty, a government chooses its exchange regime in a trade-off among three incentives: (i) tying the hands of its opponent should it lose the election; (ii) facilitating its own future policy implementation should it win the election; and (iii) increasing its chance of...

Conventional wisdom has held that a fixed exchange rate regime induces more fiscal discipline, but Tornell and Velasco (1995, 1998) argue the opposite. Using a dynamic model with fragmented fiscal policymaking, this paper evaluates the two arguments in a single framework and shows that (1)...

Housing prices in Hong Kong have been rising for more than a decade and recent hikes are mainly driven by Mainland developers in the primary market. Local developers and residents seem to be relatively conservative as the prospects for the Hong Kong housing market have been dim due to low...

In recent years, road traffic accidents, as a leading cause of accidental deaths, have been attracting more and more attention across several disciplines. Notably, the feature study on accidents severity can help exactly identify causality between different risk factors and road accidents,...

Industrial activities contribute significantly to the increase in the concentration of inhalable particles in the atmosphere. However, the environmental externalities of industrial activities for the concentration of PM2.5 from the perspective of multi-scale industrial activities remain in a...