Research in the News

Professor Xavier Gabaix's joint research on the stock market

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Excerpt from MarketWatch -- "The authors devised a formula that predicts the frequency of large crashes in the stock market over long periods of time. They found that their formula had a remarkably accurate track record not only in the U.S. stock market, but also in foreign stock markets as well. That, in turn, led them to conclude that crashes are an inherent feature of the equity markets."

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