African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4188

Full Length Research Paper

Do supply curves for stocks slope up?

  Elisabeth A. Bui1 and Steven J. Jordan2*        
  1Graduate School of International Studies, Korea University, Anam-dong, Seongbuk-Gu, Seoul, Korea 136-701. 2Kaist Graduate School of Finance, 207-43 87 Hoegi-ro, Dongdaemun-gu, Seoul, Korea 130-722.
Email: [email protected]

  •  Accepted: 31 July 2009
  •  Published: 30 September 2009

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.

 

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

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This article is published under the terms of the Creative Commons Attribution License 4.0

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