Event Studies

Event Studies are a simple way to test the impacts of public policy on market outcomes by summing the unexpected returns as new information meets the market. A clever example--well, they're typically pretty clever--is here which measures the effect of the Affordable Care Act (more commonly known as Obamacare) on different parts of the healthcare sector: pharmaceuticals, hospitals, device manufacturers. Some friendly economists explain the mechanics and uses of event studies here.

Keywords: Event studies, Andrew Johnston, Andrew, Johnston, economics, applied economics, economist, microeconomics, empirics, empirical economics, Wharton