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  • EQUITY MARKETS PRICING AND CENTRAL BANK INTERVENTIONS: A PANEL DATA APPROACH
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News
October 7, 2026
‘Our Team Consists of True Leaders in Their Respective Academic Disciplines
The HSE International Centre of Decision Choice and Analysis studies a wide range of methods for analysing decision-making and possible scenarios for the development of natural, socio-economic, and political phenomena using various mathematical models. The application of advanced mathematical methods to forecasting helps to prevent negative outcomes and avoid erroneous decisions. The HSE News Service spoke to the centre’s director, Prof. Fuad Aleskerov, about its work.
October 6, 2026
International N5 Symposium ‘Neural Networks and Nonlinearity in Nizhny Novgorod Brings Together Scientists from Russia and Serbia
The International N5 Symposium ‘Neural Networks and Nonlinearity in Nizhny Novgorod’ was held at the Nizhny Novgorod House of Scientists from September 23 to 26. The event was organised by HSE University–Nizhny Novgorod and the Nizhny Novgorod House of Scientists, with the participation of Sberbank and the Institute of Physics Belgrade. The symposium was held for the second time: the first conference took place in 2025 and attracted considerable interest from the academic community.
October 5, 2026
‘The Climate Transition Is Not Necessarily a Limitation for Business
Linara Khadimullina works in the field of low-carbon development. In an interview with the Young Scientists of HSE project, she spoke about why nature is not just a beautiful backdrop, her research on the role of sustainable corporate governance in reducing greenhouse gas emissions, and growing plants as a source of inspiration.

 

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EQUITY MARKETS PRICING AND CENTRAL BANK INTERVENTIONS: A PANEL DATA APPROACH

P. 99–99.
Rincon C. J.

This paper analyses the effects of central bank interventions on the pricing of stock market indices. The study confirms that the large-scale purchases of government debt securities in response to the Great Recession and Covid-19 crises by the Fed, influence the pricing of equity markets via its effect on the pricing of treasury bonds. The instrumental variables three-stage model approach is used to determine the impact of the Fed?s balance sheet size on the equity market indices as a measure of its price levels. Under this approach, this study examines the effects of changes in the size of the Fed?s balance sheet in three intervention scenarios: during the 2008-2013, the 2020-2021 periods, and throughout. Moreover, the study compares the results from two statistical strategies: time series and panel data. The results of this study lead to conclude that the 3SLS for time series is recommended over the panel data strategy when analyzing indices that share stocks in common. Use of the 3SLS panel data strategy is left for analyzing the effects of instruments on international indices that do not share stocks in common.

Language: English
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Keywords: instrumental variablesquantitative easingGreat RecessionCOVID-19TaperingFed’s Balance Sheet

In book

World Finance & Banking Symposium, 2022 E-Proceedings
Florida International University, 2022.
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