Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9554063 | Journal of Banking & Finance | 2005 | 21 Pages |
Abstract
This paper measures the effects of the risks associated with the war in Iraq on various US financial variables using a heteroskedasticity-based estimation technique. The results indicate that increases in war risk caused declines in Treasury yields and equity prices, a widening of lower-grade corporate spreads, a fall in the dollar, and a rise in oil prices. This “war risk” factor accounted for a considerable portion of the variances of these financial variables over the three months leading up to the arrival of coalition forces in central Baghdad.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Roberto Rigobon, Brian Sack,