Title: The effects of war risk on U.S. financial markets
Description: "This paper measures the effects of the risks associated with the war in Iraq on various U.S.  financial variables using a heteroskedasticity-based estimation technique.  The results indicate that increases in what we call the "war risk" factor 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 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"--Federal Reserve Board web site.
Subjects: Capital market, Commodity futures, Economic aspects, Economic aspects of Iraq War, 2003-, Iraq War, 2003-, Prices, Risk, Stocks, War, Iraq War, 2003-2011
Places: Iraq, United States