This article describes the value added by a stock-and-flow feedback diagram to text-only instruction in macroeconomics. The experiment was motivated by a prior study in which the use of graphs to teach macroeconomics was no more effective than verbal instruction alone. Here, in contrast, ...
et al., 2016. Agent based-stock flow consistent macroeconomics: Towards a benchmark model[J]. J...
everywhere–increasing amounts of financial leverage. Part of this is investor preference, part the lack of alternative investments, part a steady rise in housing prices over the years, part the “piggybank” relationship between governments and banks that has made loans flow like water–without...
At first blush, concept says to favor the first group, because of much stronger secular growth trends. But I don’t think macroeconomics is the most important stock market story today. For example, Consumer Discretionary, one of my favorite sectors, may be a net neutral. But for every Bed,...
Sloan (1996) examines the information content of both accruals and cash flow. He finds that investors react to earnings rather than to either of these components. This result implies that investors might not be able to see through earnings management immediately. Hence, we argue that a high ...
Initially, the stock valuation process elucidates this connection, rooted in economic theory, which posits stock value as the anticipated discounted cash flow (Huang et al., 1996). The impact of oil prices on stock cash flows varies, contingent upon the relationship between the issuing company ...
In very mature markets, the optimal strategy for shareholders may be for a company to gradually self-liquidate and manage the firm for maximum dividend payments. Probably the worst strategy, although likely also the one most often pursued, is instead to use cash flow to pivot into a new field...
Proano, and W. Semmler (2011) "Stock-Flow Interactions, Disequilibrium Macroeconomics and the Role of Economic Policy," Journal of Economic Surveys 25(3), 569-599.Asada, T., Chiarella, C., Flaschel, P., Mouakil, T., Proan˜o, C. and W. Semmler (2010b): Stock Flow Interactions ...
and Europe, where the concept of ESG was developed. Thus, it is unclear whether the results of previous studies apply to other regions, such as Asia. Indeed, it has been pointed out that Japanese companies and investors are becoming increasingly conscious of the importance of ESG investment (...
Agent based macroeconomicsStock flow consistent modelsBusiness cyclesBank regulationThe paper moves from a discussion of the challenges posed by the crisis to standard macroeconomics and the solutions adopted within the DSGE community. Although several recent improvements have enhanced the realism of ...