Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-52002
Waldenström, Daniel; Frey, Bruno S (2002). How Government Bond Prices Reflect Wartime Events. The Case of the Stockholm Market. Working paper series / Institute for Empirical Research in Economics No. 102, University of Zurich.
How are political events reflected in financial asset prices? Break points in sovereign debt prices are analyzed for Denmark, Norway, Finland, Sweden, Germany and Belgium during 1930-1948, using unique data from the Stockholm Stock Exchange. Unlike in countries in-volved in WWII, this market was unregulated. The outbreak of World War II heavily depressed prices of government bonds. Countries which were occupied (Belgium, Denmark and Norway) or under attack (Finland) saw their debt depreciate substantially. The battle of Stalingrad turns out indeed to be a turning-point of the war. This approach represents a complementary quantitative method to analyze the impact of political events.
340 downloads since deposited on 29 Nov 2011
94 downloads since 12 months
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||29 Nov 2011 21:26|
|Last Modified:||09 Jul 2012 05:02|
|Series Name:||Working paper series / Institute for Empirical Research in Economics|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page