Institutional changes, wars and stock market risk in an emerging economy: Evidence from the Israeli stock exchange, 1945-1960

Raphaël Franck; Miriam Krausz

doi:10.1007/s11698-008-0030-z

Institutional changes, wars and stock market risk in an emerging economy: Evidence from the Israeli stock exchange, 1945-1960

Raphaël Franck^*, Miriam Krausz

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

In an effort to understand the determinants of economic growth in an emerging economy, we analyze the effects of institutional reforms, wars and political events on the risk level of the Israeli stock market between 1945 and 1960. We find that the anticipation of wars did not have any effect but the end of skirmishes actually raised the risk on the stock market. Domestic political instability also increased the stock market risk. Finally we find that most legal reforms did not matter much.

Original language	English
Pages (from-to)	141-164
Number of pages	24
Journal	Cliometrica
Volume	3
Issue number	2
DOIs	https://doi.org/10.1007/s11698-008-0030-z
State	Published - 2009
Externally published	Yes

Bibliographical note

Funding Information:
Acknowledgments We thank Abraham Lioui and Peter Temin for comments on previous drafts of this paper. Part of this article was written while Franck was staying at the Center for the Study of Public Choice at George Mason University, whom he thanks for its hospitality. Both authors gratefully acknowledge financial support from the Adar Foundation of the Economics Department at Bar Ilan University. The usual disclaimer applies.

Keywords

Emerging economy
Institutions
Stock market
War

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abstract = "In an effort to understand the determinants of economic growth in an emerging economy, we analyze the effects of institutional reforms, wars and political events on the risk level of the Israeli stock market between 1945 and 1960. We find that the anticipation of wars did not have any effect but the end of skirmishes actually raised the risk on the stock market. Domestic political instability also increased the stock market risk. Finally we find that most legal reforms did not matter much.",

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Institutional changes, wars and stock market risk in an emerging economy: Evidence from the Israeli stock exchange, 1945-1960

Abstract

Bibliographical note

Keywords

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