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Financial markets’ shutdown and re-access

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journal contribution
posted on 07.09.2017 by Luca Agnello, Vitor Castro, Ricardo M. Sousa
We employ a discrete-time parametric duration model on a group of 121 countries over the period 1970-2011 and find that the probability of the end of financial markets’ shutdown and re-access falls as these events become longer. We also show that: (i) shutdown episodes are longer when economic prospects are poor and the degree of financial openness falls, the chief executive has been in office for long periods, and the country has a default history; and (ii) spells of re-access tend to be longer when economic growth improves and financial openness increases, there are neither government crises nor government instability, and the country did not default in the past.

Funding

Castro and Sousa acknowledge that this work was carried out within the funding with COMPETE reference nº POCI-01-0145-FEDER-006683, with the FCT/MEC's (Fundacao para a Ciencia e Tecnologia, I.P.) financial support through national funding and by the ERDF through the Operational Programme on "Competitiveness and Internationalization - COMPETE 2020" under the PT2020 Partnership Agreement.

History

School

  • Business and Economics

Department

  • Economics

Published in

Economic Inquiry

Citation

AGNELLO, L., CASTRO, V. and SOUSA, R.M., 2017. Financial markets’ shutdown and re-access. Economic Inquiry, 56 (1), pp. 562–571.

Publisher

Wiley © Western Economic Association International

Version

AM (Accepted Manuscript)

Publisher statement

This is the peer reviewed version of the following article: AGNELLO, L., CASTRO, V. and SOUSA, R.M., 2017. Financial markets’ shutdown and re-access. Economic Inquiry, 56 (1), pp. 562–571, which has been published in final form at https://doi.org/10.1111/ecin.12518. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

Acceptance date

22/03/2017

Publication date

2017

ISSN

0095-2583

eISSN

1465-7295

Language

en

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