As part of the Joint webinar series organised by the Department of International Economics and the CEPR,  we are pleased to invite you to an online public talk by the Professors Anusha Chari, Andrew Greenland and Peter Schott . They will present their paper

Aggregate and Firm-Level Stock Returns During Pandemics, in Real-Time

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Abstract: We exploit unexpected changes in the trajectory of pandemics to quantify their effects on aggregate and firm-level stock returns. We find that an unanticipated doubling of predicted infections during the Covid-19 and SARS outbreaks forecasts aggregate equity market value declines of 4% to 11%. Firm returns are sensitive to this information even after accounting for their co-movement with the market, and vary widely both within and across sectors. Our results imply a decline in returns' reaction to new infections as the trajectory of the pandemic becomes clearer.

Covid  Economics,  Vetted  and  Real-Time  Papers,  from  CEPR,  brings  together  formal   investigations   on   the   economic   issues   emanating   from   the   Covid   outbreak,  based  on  explicit  theory  and/or  empirical  evidence,  to  improve  the  knowledge base.
Founder: Beatrice Weder di Mauro, President of CEPR | Editor: Charles Wyplosz, Graduate Institute Geneva and CEPR.