How Prediction Markets Can Save Event Studies

@inproceedings{Snowberg2011HowPM,
  title={How Prediction Markets Can Save Event Studies},
  author={Erik Snowberg and Justin Wolfers and Eric Zitzewitz},
  year={2011}
}
This review paper articulates the relationship between prediction market data and event studies, with a special focus on applications in political economy. Event studies have been used to address a variety of political economy questions - from the economic effects of party control of government to the importance of complex rules in congressional committees. However, the results of event studies are notoriously sensitive to both choices made by researchers and external events. Specifically… CONTINUE READING

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