Financial markets’ shutdown and reaccess
journal contributionposted on 07.09.2017, 14:46 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.
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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.
- Business and Economics