Working paper: Explosive returns: teaching event studies using hydrogen bomb development

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Abstract:

Event studies are ubiquitous in empirical finance, but absent from many undergraduate econometrics texts. We provide a case study drawing on Armen Alchian’s inference of the use of lithium as the essential metal for use in hydrogen bombs testing. More rigorous tests validate Alchian’s original finding, although the results are somewhat sensitive to the time period used to construct the model for normal returns. We provide two sample assignments; one for students with only an introduction to statistics, and one for students who have experience with linear regression.

Citation

Ethan Struby. 2024. “Explosive returns: teaching event studies using hydrogen bomb development” Working Paper.

@article{struby_eventstudy,
title = {Explosive returns: teaching event studies using hydrogen bomb development},
author = {Struby, Ethan},
year = {2024},
institution={Carleton College, Department of Economics},
type={Working Papers}