Plausibly Exogenous [1794] - Fire Sales (12/31/2024)

LHS Variable
Prices

RHS Variable
Fire sale

Source of Exogenous Variation
In November of 2007 a fire sale of Chilean stocks was triggered by a change in the constraints that regulate pension fund portfolios.

- Larrain, Munoz, and Tessada (2017), “Asset fire sales in equity markets: Evidence from a quasi-natural experiment”