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Dr Fang Xu
Senior Lecturer in Economics

Marie Jahoda 254

Research area(s)

  • Empirical Finance
  • Applied Macroeconomics
  • Time Series Econometrics
  • Textual Analysis

Research Interests

Time series econometrics, empirical macroeconomics and finance

Research grants and projects

Research Projects

Grants

Impacts of news coverage on the financial markets
Funder: British Academy
Duration: June 2022 - September 2024

Despite the key influence of news coverage on the financial markets, there has been no large-scale examination of this across different countries. In this project, we use semantic fingerprinting, a novel language processing technology, to translate qualitative description in news articles to quantitative measures. We develop a “news intensity” measure, study its impact on the volatility of stock markets over 24 countries, its relationship with economic policy uncertainty and investors’ attention.

Theoretical and empirical studies of global current account imbalances
Funder: Fritz-Thyssen Foundation
Duration: May 2008 - April 2011

This project explores the dynamics of current account imbalances and the corresponding saving-investment relationship. We introduce new bounded stationarity tests to assess the sustainability of these imbalances. Our results indicate that current account imbalances follow stochastic trends within their natural bounds. Additionally, we present a novel factor-based bootstrap inference for functional coefficient models. Using this approach, we find that the saving-investment relationship is influenced by key economic variables, including population growth, the age dependency ratio, and economic openness.

Project details

Current:

  • "Measuring the time-varying impact of conventional monetary policy on stock markets via an identified multivariate GARCH model", in collaboration with Dr. M. Roestel at University Kiel and Prof. H. Herwartz at University of Göttingen, Revise and Resubmission at Journal of Banking and Finance
  • "News coverage and stock market volatility",  in collaboration with I. Avoiz at Ben Gurion University, submitted to Oxford Bulletin of Economics and Finance
  • "Asset prices and market risk during downturn with high frequency data”, in collaboration with Dr. R. Versteeg at Imperial College London
  • "Multi-lingual news and financial markets across countries”, in collaboration with I. Avoiz at Ben Gurion University
  •  "Time-varying impacts of conventional and unconventional monetary policy on financial markets", in collaboration with Dr. M. Roestel at University Kiel and Prof. H. Herwartz at University of Göttingen

Completed: 

  • "News coverage and economic uncertainty", in collaboration with Dr. J. Wu at Queen Mary University of London
  • "Investor attention measured by Google search queries and financial market volatility", in collaboration with Prof. H. Herwartz at University of Göttingen
  • "The role of low mortgage rates and securitization in the U.S. housing boom", in collaboration with Prof. H. Herwartz at University of Göttingen
  • "Determinants of the stock price to dividend ratio", in collaboration with Dr. M. Roestel at University Kiel and Prof. H. Herwartz at University of Göttingen
  • "Tests for unit roots in bounded time series", in collaboration with Prof. G. Cavaliere at University of Exeter and University of Bologna
  • "The role of log transformation in forecasting economic variables", in collaboration with Prof. H. Lütkepohl at the Freie University Berlin
  • "Sustainability of current account imbalances and the saving-investment relationship", in collaboration with Prof. H. Herwartz at University of Göttingen
  • "New approaches to bootstrap inference in functional coefficient models", in collaboration with Prof. H. Herwartz at University of Göttingen
  • "The role of the consumption-wealth ratio in financial markets"

Brunel University London
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