Do supply curves for stocks slope up?

Authors

  • Elisabeth A. Bui
  • Steven J. Jordan

Keywords:

Supply curve slope, CAPM, Lucas exchange tree, JEL classification: G, M2

Abstract

The classical assumptions and standard models in finance assume a unit of fixed supply for an asset implying a flat supply curve. This paper empirically examines this claim and demonstrates that the supply curve for stocks slopes upward over the period from 1961 to 2008.

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Published

2009-12-04