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Does budget deficit lower equity prices in USA?

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  • Quayes, Shakil

Abstract

This paper investigates the relationship between budget deficits and stock prices, incorporating the effects of inflation and the demographic structure. The results show that while the proportion of population in their prime earning age has a positive effect, both budget deficits and inflation have a negative impact on stock prices.

Suggested Citation

  • Quayes, Shakil, 2010. "Does budget deficit lower equity prices in USA?," Economics Letters, Elsevier, vol. 107(2), pages 155-157, May.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:155-157
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    References listed on IDEAS

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    Cited by:

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    2. Pooja Joshi & Arun Kumar Giri, 2015. "Fiscal Deficits and Stock Prices in India: Empirical Evidence," IJFS, MDPI, vol. 3(3), pages 1-18, August.
    3. Luqman SAFDAR, 2014. "The relationship between twin deficit and stock market: An ARDL approach from Pakistan," EuroEconomica, Danubius University of Galati, issue 1(33), pages 109-121, May.

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