Stock Markets and Household Wealth: Can a Stock Market Crash Cause a Recession in The U.S. Economy?

Stock market wealth effects on the level of consumption in the United States economy have been constantly debated; there is evidence for arguments for and against its prominence and its symmetry. This paper seeks to investigate the strength of its negative effect by creating models to analyze unexpected shocks to the Standard and Poor's 500 index. First, a transmission mechanism between the stock market and GDP is established through the use of second-order vector autoregressive models. Following which, theory from the life cycle model and adaptations of previous researchers' models are used to create a structural model. This paper finds that stock market wealth effects are small, but important to consider, especially if markets are overpriced; this claim is corroborated by evidence from simulation of 'alternative scenarios' and the historical experiences of 1987 and 2001.

The Old Road

The plot consists of the progression which the characters undergo. For the old man, the plot is his movement away from the earthly existence of the farm and into the physical process of the seasons. For the older grandson, it is the movement away from the past, symbolized by the farm, and into the present symbolized by his marriage and coupling with society. For the younger grandson, the movement is from childhood to the maturity which being alone demands in order for him to survive.

The Road from Marja: Wounded in Afghanistan, Capt. Erik Quist '99, USMC, sees another side of combat

Marine Corps Capt. Erik Quist ’99 had fought in two wars. Now he fights again as he recovers from severe wounds suffered in Afghanistan.