INVITATION
The WU Gutmann Center cordially invites you to the forthcoming
WU GUTMANN CENTER PUBLIC LECTURE
www.gutmann-center.at
(apologies for duplicated mails!)
Date: DECEMBER 5 (Monday), 2011 - 4:00 pm
Location: Bank Gutmann AG, Schwarzenbergplatz 16, 1010 Wien
Speaker: Prof. Dr. LUBOS PASTOR, The University of Chicago Booth School of Business
http://www.ChicagoBooth.edu/fac/lubos.pastor/
Title: POLITICAL UNCERTAINTY AND THE STOCK MARKET
ABSTRACT:
We study the pricing of political uncertainty in a general equilibrium model of government
policy choice. We find that political uncertainty commands a risk premium whose magnitude
is larger in poorer economic conditions. Political uncertainty reduces the value of the
implicit put protection that the government provides to the market. It also makes stocks
more volatile and more correlated when the economy is weak. In addition, we find that
government policies cannot be judged by the stock market response to their announcement.
Announcements of deeper reforms tend to elicit less favorable stock market reactions.
ABOUT LUBOS PASTOR:
Lubos Pastor is Charles P. McQuaid Professor of Finance at the University of Chicago Booth
School of Business. He is also a Research Associate at the National Bureau of Economic
Research and a Research Fellow at the Centre for Economic Policy and Research. In
addition, he serves as an Associate Editor of the Journal of Finance and Journal of
Financial Economics, as a Director of the Western Finance Association, and is a former
Associate Editor of the Review of Financial Studies. Professor Pastor has been teaching at
the University of Chicago since 1999 when he obtained a Ph.D. in finance from the Wharton
School at the University of Pennsylvania.
Professor Pastor's research focuses mostly on asset pricing and asset management. He
has written on a broad range of topics such as liquidity risk, stock price bubbles,
portfolio choice, performance evaluation, return predictability, long-run volatility, cost
of capital, technological revolutions, government-induced uncertainty, and IPOs. He has
analyzed parameter uncertainty and its resolution by learning. His articles have appeared
in the American Economic Review, Journal of Finance, Journal of Financial Economics,
Journal of Political Economy, Review of Financial Studies, as well as nonacademic
publications such as the Financial Times. He has earned numerous prizes for research and
teaching.
Lubos Pastor is a member of the WU Gutmann Center's Academic Advisory Board.
For more information about Professor Pastor:
http://www.ChicagoBooth.edu/fac/lubos.pastor/
Please REGISTER:
Mail: gutmann-center(a)wu.ac.at
Phone: +43-1-31336-4244
***NEXT WU Gutmann Center Public Lecture:
DECEMBER 15:
Prof. Dr. JEFFREY R. BROWN: "BEHAVIORAL ASPECTS OF INSURING LIFETIME INCOME"***
http://www.wu.ac.at/gc/whatwedo/bridging/lectures
CONTACT AND FURTHER INFORMATION:
WU Gutmann Center for Portfolio Management
WU (Wirtschaftsuniversität Wien) - Department of Finance, Accounting and Statistics
Mag. Dorothea GRIMM
www.gutmann-center.at