Do Supply Curves for Stocks Slope Up?
African Journal of Business Management, Vol.3 (9), pp. 405-409, September 2009
Posted: 20 Sep 2012
Date Written: 2009
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.
Keywords: Supply curve slope, CAPM, Lucas exchange tree, Demand, Consumption, Production
JEL Classification: G, M2
Suggested Citation: Suggested Citation