tag:blogger.com,1999:blog-582368152716771238.post7493775714237367160..comments2024-03-28T14:41:03.793-05:00Comments on The Grumpy Economist: More good finance articlesJohn H. Cochranehttp://www.blogger.com/profile/04842601651429471525noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-582368152716771238.post-11920665225356232932017-03-29T15:26:11.783-05:002017-03-29T15:26:11.783-05:00The innovation here isn't in the "theory&...The innovation here isn't in the "theory" it's in the data. Typically, science oscillates from: new data --> new theory --> new data etc.<br /><br />If we're using the same data tools (CRSP, compustat, Fed numbers etc) as have been used for the past 40 years, we're unlikely to make any real progress in theory either.Fish Goldsteinhttps://www.blogger.com/profile/13864053986442147618noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-77345039807881120102017-03-28T14:09:49.950-05:002017-03-28T14:09:49.950-05:00Is this a win or lose for you Professor Cochrane? ...Is this a win or lose for you Professor Cochrane? On one hand having more bank capital doesn't prevent runs, because more capital also seems to induce more risk taking. But it does improve macroeconomic stability. Recoveries happen much faster when bank equity is higher.<br /><br />https://www.nber.org/papers/w23287#fromrssJohnhttps://www.blogger.com/profile/12142023935426755508noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-77206366608546696602017-03-27T08:48:15.124-05:002017-03-27T08:48:15.124-05:00Cochrane says:
"Part of my psychological make...Cochrane says:<br />"Part of my psychological makeup, part of what attracted me to economics all along, are the far more frequent cases in which dogged work shows how supply and demand indeed explain all sorts of puzzles."<br /><br />Not that I disagree - but I really wish you would have been my grad school advisor.<br />When I was in grad school (Econ), I was told exactly what you say about "paradigm shifting". I was told that a paper must contain "a surprising result", "something unexpected", because otherwise the paper is garbage and cannot be published. Honest to God, that is what I was told over and over.<br />Papers as you mention, where "supply and demand explain... puzzles" were too menial, at least in my grad school, too ordinary, too simple. Such papers are not surprising, and the conclusion is obvious. Thus, such papers are unpublishable.<br />So much for grad school in Econ.Manfred the mamoothhttps://www.blogger.com/profile/07516724901598949627noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-18301169485896592972017-03-26T05:56:04.385-05:002017-03-26T05:56:04.385-05:00Is Value/Growth stock defined by price to book val...Is Value/Growth stock defined by price to book value ratio, or by cash-dividend yield?Yopehttps://www.blogger.com/profile/18390656124581728998noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-11370329880674750792017-03-25T19:36:54.930-05:002017-03-25T19:36:54.930-05:00I think the Bertermeier, Calvet, and Sodini paper ...I think the Bertermeier, Calvet, and Sodini paper is interesting from an asset allocation perspective. And I believe there is a risk explanation to the value premium. But I would have liked to see more evidence.<br /><br />According to their data, the value investors hold most of the financial wealth (are richer, etc). So why is there a value premium in equilibrium when the richest investors are actually indifferent to human capital risk? Why dont these rich investors that are less concerned with human capital risk simply insure the ones that are exposed to the risk? (the original objection to Fama/French's explanation I guess)<br /><br />In addition, these portfolio holding datasets tend to classify as "stock holders" someone that holds one stock received in a privatization 20 years ago. These are usually not the marginal investors, are they?Thiagonoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-86755049889305916672017-03-25T14:30:33.780-05:002017-03-25T14:30:33.780-05:00thanks prof, no "paradigm shifter," here...thanks prof, no "paradigm shifter," here<br />https://mathfinance.com/events/conference.html<br />attending, bestMPAhttps://www.blogger.com/profile/05204223669169160577noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-39957317800682115732017-03-25T05:24:29.880-05:002017-03-25T05:24:29.880-05:00"I like "normal science." And I thi..."I like "normal science." And I think we should celebrate it more" <br />Does solid work give tenure?Anonymousnoreply@blogger.com