The Long Run Impact of Entrepreneurship and Government Deficit on Stock Prices - An Empirical Analysis for Western European Countries (1990-2006)

Abstract

In the present paper author will try to point out that government debt as a percentage of GDP has a negative impact on stock prices in the long run, while entrepreneurial caliber has a positive effect on stock prices in the long run. Data are annual and cover Western European economies for the period 1990-2006. The elaboration of data is made feasible through the Eviews software package. This paper is an extension of author’s previous works.

Keywords: Consumption, Economic growth, Taxation, Econometric Model with Panel data (single equation), Government debt, Interest rates, Stock market, Entrepreneurship

JEL Classification: E21, F43, H2, C23, E62, G12, L26