Asset market perspectives on the Israeli-Palestinian conflict

Asaf Zussman*, Noam Zussman, Morten Ørregaard Nielsen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

45 Scopus citations

Abstract

This paper locates turning points in the Israeli-Palestinian conflict since the late 1980s using asset market data from Israel and the Palestinian Authority (PA). We find that major escalations in violence, such as the outbreak of the Intifada in 2000, lead to significant declines in asset prices in both Israel and the PA. Conversely, major peace initiatives, such as the Oslo accords in 1993 and the Road Map plan in 2003, lead to substantial increases in asset prices on both sides of the conflict. An additional novel finding is that asset markets respond positively to the success of politicians who favour a negotiated settlement to the conflict.

Original languageEnglish
Pages (from-to)84-115
Number of pages32
JournalEconomica
Volume75
Issue number297
DOIs
StatePublished - Feb 2008
Externally publishedYes

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