Divided Government Risk Premium?
May 31, 2013 - Political Indicators
Do investors demand a risk premium for divided government because of the policy uncertainty of gridlock? In the April 2013 preliminary draft of their paper entitled “Divided Governments and Asset Prices”, Elvira Sojli and Wing Wah Tham investigate the effect of divided government on asset prices by comparing U.S. stock market performance in years of divided… Keep Reading